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Quarterly Earning Report on a Current
AIM International Fund Holding: LVMH Moët Hennessy Louis Vuitton ($LVMH) by Finimize
“While Still a Hold it Appears Ready To
Go”
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Quarterly Earnings Report On Tuesday, the world’s largest luxury
goods company, LVMH Moët Hennessy Louis Vuitton (no
prizes for guessing its biggest brands), reported quarterly sales that were
roughly what investors expected. Fashion (and leather – ooh er!) appeared
to tickle the fancy of LVMH’s customers. Sales in the company’s fashion and
leather segment grew by 14%compared to
the same time last year, helping overall sales to grow by 11% – bang on estimates (excluding
the effects of currency swings).
Chinese shoppers are important in the luxury sector, making up a third of global
sales of luxury products. And more of the same from
LVMH probably means it’s continuing to woo those customers. The company will
be hoping its momentum continued during China’s recent Golden Week – a week-long
(!), countrywide holiday.
For markets: Where LVMH leads, others tend to follow.
 
LVMH is a bellwether of the luxury industry and investors often look to it
for clues about what’s going on at other luxury companies like Kering (home of
Gucci), Hermès (father of
the $400,000 bag), and Richemont (Cartier’s riche owner).
Last week, reports that Chinese travelers returning home were having their luggage checked for
luxury goods bought abroad that might be subject to taxes rattled investors
in luxury companies’ stocks. LVMH’s continued sales growth might help
reassure them that Chinese customers are still shopping around the world
nonetheless.The bigger picture: Luxury conglomerates – move over for the new kid. The world’s largest luxury companies are made up of several separate brands – besides Gucci, Kering owns Bottega Veneta and (Yves) Saint Laurent, to name a couple. Not too long ago, Michael Kors only had its eponymous brand to its name, but its acquisition of Jimmy Choo last year and Versace last monthsuggests it’s well on the way to mirroring its European rivals. However, according to some, it’s still got a long way to go.  |
Tuesday, October 9, 2018
A Current AIM International Fund Holding: LVMH Moët Hennessy Louis Vuitton ($LVMH) by Finimize “Bagged Up And Ready To Go”
