LVMH Supports Sentiment in The Luxury Goods Sector
Moët Hennessy Louis Vuitton (MC.FR) is fueling bullish sentiment across the global luxury goods sector following the release of very strong Q1 2023 results. The start of the year, despite the tough overall market conditions, failed to derail the company’s momentum as it published significantly better-than-expected quarterly results. The main supportive factor is, of course, the opening Asian markets, whose demand for the most expensive goods is very high. The only market that indicated a decline in demand was the United States.
Organic sales of LVMH’s largest business unit, the fashion and leather goods division, rose 17% year-on-year in Q1. This result was almost double the analyst consensus.
The company is very optimistic about results in China this year. Uncertainty, however, was provided by the previously mentioned market in the US, which is slowing down. As for the company’s individual products, leather goods and a division focused on the sale of expensive cognacs are mainly affected by the drop in demand (sales were down 5% year-on-year). Source: LVMH
Detailed results presented by the company for Q1 2023 and analysts’ forecasts. Source: Bloomberg
The company’s very strong results also support the stock prices of other luxury goods companies.Source: xStation 5
LVMH (MC.FR) shares are climbing to new historic highs. Source: xStation 5