Shares in Louis Vuitton Moet Hennessy (LVMH) strutted higher as the European luxury group reported a soft start to 2024, let down by jewellery, spirits and champagne, though not as bad a quarter as many investors had expected.
The shares had fallen 10% since mid-March from above $900 to €781 earlier in the week, but sashayed 5% higher to €819.60 on Wednesday.
Total organic sales of €20.7 billion were up 3% on a year ago, in line with consensus analyst forecasts.
By division, Fashion & Leather had a slower start than anticipated, with organic sales growth (OSG) up 2% compared to the 3% consensus; Wine & Spirits continued to underperform with an organic sales decline of 12% that was worse than the 9% expected, with cognac & spirits falling 16% and champagne & wines down 8%.
Selective Retailing stood out, with a positive 11% OSG versus 10% consensus, while Perfumes & Cosmetics came bang in-line (+7% OSG), Watches & Jewellery had a weak quarter as the market anticipated, down 2% versus the a 1% consensus forecast decline.
"LVMH had a good start to the year despite a geopolitical and economic environment that remains uncertain