LVMH stock: Living in style is not forbidden

• Published date: 18 April 2024
• Author: AVI STERN
• Publication title: Jerusalem Post, The: Web Edition Articles (Israel)

LVMH Moët Hennessy Louis Vuitton, the luxury conglomerate, reported first-quarter revenue slightly below expectations, signaling a slight slowdown in high-end fashion sales. The French company saw a 2% dip in revenue for the quarter ending in March, reaching €20.7 billion ($22 billion), roughly aligning with analysts' predictions of a sluggish start to the year

The company attributed the decline to fluctuating currency values, stating that organic revenue, which excludes currency fluctuations, actually increased by 3%. Sales in Japan surged by 32% due to a weakened Japanese yen, while demand for luxury goods in China dropped by 6%. The segment most affected was wines and spirits, including brands like Hennessy and Moët & Chandon, which saw a 12% decrease in sales, perhaps because fewer people were celebrating with champagne.

While LVMH's sales didn't meet market expectations, they weren't as dire as feared, providing a positive outlook given the cautious investor sentiment leading up to the announcement. It's worth noting that savvy investors may have been...