LVMH Quarterly Sales Top Estimates
LVMH, the world’s biggest luxury-goods maker, reported third-quarter revenue that beat estimates, led by a stronger-than-expected performance in fashion and leather goods.
Sales rose to 9.14 billion euros ($10.2 billion), the Paris-based maker of Hennessy cognac said in a statement Monday. Analysts had predicted 8.92 billion euros, according to the median of 21 estimates in a Bloomberg survey. Revenue climbed 6 percent on an organic basis, compared with the 4 percent median estimate.
The owner of Louis Vuitton handbags was boosted by its fashion and leather-goods unit, where sales rose 5 percent in the quarter, compared with the 2 percent median estimate. The company last week took over German suitcase maker Rimowa for 640 million euros -- a move that Deutsche Bank analysts have said may either postpone or reduce the size of a potential share buyback.
“Asia, excluding Japan, showed a significant improvement during the quarter,” LVMH said in the statement. “The U.S. remains well positioned, as does Europe, with the exception of France which continues to feel the impact of a decline in the number of tourists.”
Shares of the company, whose full name is LVMH Moet Hennessy Louis Vuitton SE, rose 1.1 percent to 157.05 euros in Paris. The sales were released after markets closed.
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