A photograph of the new Louis Vuitton luxury shop on the Champs Elysées avenue in Paris
LVMH Shares Retreat as Luxury Sector Remains Cautious
Friday, April 24, 2024
Shares of LVMH Moët Hennessy Louis Vuitton SA, the world’s largest luxury company, retreated on Wednesday as investors remain cautious about a potential rebound in the luxury sector. The company reported slightly better-than-expected annual results, with revenues of €84.68 billion for 2024, exceeding the €84.38 billion forecast by LSEG analysts.
The revenue growth was driven by solid demand in the selective retailing division, which includes retailer Sephora, and perfume and cosmetics, as well as consumers in the US, Europe, and Japan. However, the Asia Pacific region, noticeably China, lagged behind.
LVMH’s results were met with a mixed reception, with some analysts citing a continued divergence between the best and the rest in the luxury sector. Luca Solca, senior analyst for global luxury goods at Bernstein, stated that LVMH has “work to do” to regain market share, particularly in its prestigious handbag segment.
LVMH’s shares pared losses to trade down 5.42% by 11:00 a.m. London time, while fellow luxury goods stocks Kering and Christian Dior dropped 5.82% and 5.06%, respectively. Despite the mixed results, LVMH’s shares are up around 14% year-to-date, surpassing Danish pharmaceutical giant Novo Nordisk to regain the title of Europe’s most valuable company earlier this month.