LVMH Trades Higher After 3Q Sales; Kering, Hermes Shares Also Up
By Joshua Kirby
Shares in LVMH Moet Hennessy Louis Vuitton SE traded higher
Friday morning and other luxury-goods stocks were also up after the
French conglomerate on Thursday reported third-quarter sales that
beat analyst expectations and showed positive growth in some
LVMH, the world's largest luxury-goods company by value, on
Thursday said quarterly sales stood at 11.96 billion euros ($14.05
billion), down 7% organically from the same period the previous
year, but that the core fashion and leather goods division saw
positive organic growth of 12%. Cognac sales also grew compared
with the third quarter of 2019, the company said.
Analysts had expected sales of EUR11.37 billion, according to a
consensus estimate provided by FactSet and based on four analyst
Shares in LVMH at 0744 GMT traded 6.8% higher at EUR430.35.
Shares in sector peer Kering were up 3.7% at EUR587.50, while
Hermes International SCA traded 4% higher at EUR802.60.
The results confirm LVMH's soft-luxury division as the benchmark
for the sector, which is particularly relevant to Kering, say
analysts at bank Jefferies. Overall LVMH's sales update should
encourage a more positive view of the luxury-goods sector, which
seems to have seen strong sales over the summer following the worst
impacts of the coronavirus earlier in the year, according to
Write to Joshua Kirby at email@example.com
(END) Dow Jones Newswires
October 16, 2020 04:14 ET (08:14 GMT)
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