LVMH Shares Rise After 3Q Beats Expectations -- Update
October 10 2019 - 5:24AM
Dow Jones News
--Shares in LVMH trade higher after the luxury giant reported
third-quarter revenue
--The French group did better than analysts expected despite the
protests in Hong Kong and other market pressures
--The results are reassuring, an analyst said
By Cristina Roca
Shares in LVMH Moet Hennessy Louis Vuitton SE (MC.FR) traded
higher Thursday after the luxury-goods giant beat analysts'
expectations for third-quarter revenue despite toughening
conditions for luxury players.
The French conglomerate said late Wednesday that it had revenue
of 13.32 billion euros ($14.61 billion) for the quarter, rising
from EUR11.38 billion the year previous and beating analysts'
expectations of EUR12.81 billion, according to a consensus estimate
provided by FactSet.
The strong result confirms the group's resilience in the face of
toughening markets, assuaging investors' fears, Bryan Garnier
analyst Loic Morvan said.
At 0852 GMT, shares in LVMH traded 4.7% higher at EUR373.70.
LVMH's revenue grew organically by 11%, spearheaded by key
fashion and leather-goods brands Louis Vuitton and Dior, JPMorgan
analyst Melanie Flouquet said.
LVMH's fashion and leather-goods division defied external
pressures including the Hong Kong protests and market softness in
the U.S., Ms. Flouquet said. It remained the group's
fastest-growing division, growing organically by 19% in the
quarter. The division is high-margin, which bodes well for the
group's profitability in the second half, Morgan Stanley analyst
Edouard Aubin said.
LVMH, which also owns the Bulgari and Hennessy brands, said its
Asian businesses made good progress despite the disruption in Hong
Kong.
Write to Cristina Roca at cristina.roca@dowjones.com;
@_cristinaroca
(END) Dow Jones Newswires
October 10, 2019 05:09 ET (09:09 GMT)
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