LVMH’s (OTCMKT:LVMUY) Q-3 Revenues Beat Estimates

LVMH’s (OTCMKT:LVMUY) Q-3 Revenues Beat Estimates

$LVMUY

LVMH, the world’s largest luxury-goods maker, reported Q-3 revenue that exceeded analysts’ estimates, boosted by growth in Europe, the US and Japan.

Revenue advanced 7% on an organic basis, the Paris-based maker of TAG Heuer watches said in a statement Monday, topping the 5.4% median of 18 analysts’ estimates.

Gains at the wines-and-spirits unit outweighed slower-than-anticipated growth in fashion and leather goods.

The figures provide a boost for the luxury industry at a time when China’s slumping stock market and currency devaluation add to the challenges that companies face in the world’s second-largest economy. While sales of leather-goods, cognac and watches have fallen in the country following a clampdown on extravagance, Europe and Japan have benefited as Chinese consumers buy abroad. LVMH-owned Bulgari sees record travel purchases this year, the jeweler said last month.

Shares of the company, whose full name is LVMH Moet Hennessy Louis Vuitton SE, rose 0.5% to EUR 166.5 in Paris. The sales were released after markets closed.

Total revenue for the Quarter climbed 16% to $9.76-B, above analysts estimates.

The wines-and-spirits unit provided the biggest surprise, showing a 16 percent increase in organic revenue for the Quarter, compared with the median estimate for 5% growth. Shipments of Hennessy cognac were helped by a rebound in China, the company said.

“We anticipate the miss in F&LG may be taken as a negative by the market — reopening questions on LV, just at a time when a recovery by the leather mega-brand was becoming consensual,” Luca Solca, an analyst at Exane BNP Paribas, said in a note.

Stay tuned…

HeffX-LTN

Paul Ebeling

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