Mimosa Spencer and Danilo Mesoni
LVMH’s Paris (Reuters) -Share is the largest on Wednesday 14 months after the latest sales of the luxury groups have disappointed investors who want a strong rebound in the sector Bellweather. The decrease was proceeding smoothly.
Louis Vuitton Fashion and Bulgari Jewelry have reported that the sales in the fourth quarter have increased by 1 % and have broken the estimation. However, the margin is overwhelmed by higher costs, and management quotes one -time events, such as an increase in staff costs related to the Paris 2024 Olympics and the stock scheme of employees.
The most valuable companies in Europe have decreased by 6.7 % in early trade and decreased by 1200 GMT by 5 %. The overwhelming update will follow a series of powerful releases from rivals, followed by a recovery rally with LVMH shared from a low hit for more than two years in November.
Gucci-Owner Kering has decreased by 6 %. Hermes, which is considered to be most suitable for the weather, has increased 0.1 %, which is considered most suitable for the wealthy customer base.
The sales from the major fashion and leather division of LVMH in the fourth quarter was the home of the label of Lyviton and Dior, which earned the top, but the beat was about 2 % points higher than expected. It is not enough to call it a change point. ” Thomas Chamebet, a city analyst.
The luxury sector has fallen by 2 % last year, according to Bain & Company, which was hit by the Chinese property crisis, and has decreased by 2 % last year.
However, recent expectations from companies, including Cartier’s owner, Rich Mont and Burberry, hope that this sector will start the year on a harder ground.
The result of LVMH is to challenge the story of the sector found in Rich Mont and Burberry, “All luxury companies have seen acceleration,” but will strengthen the faster recovery ideas than expected in October. The German bank analyst states in a memo to the client.
Luxury stocks, which have been unstable since the boom after the pandemic collapsed, have risen since the start of 2025, Rich Mont has increased by 25 %, and Hermes has increased by 15 %.
(Report by Mimosa Spencer. Additional report by Danilo Masononi in Milan. Edited by Jason Nee and Mark Potter)
