Staff Report
LVMH shares experienced a downturn at the close of the market on Tuesday following the company’s latest financial report, failing to uplift investor sentiment.
As the world’s leading luxury conglomerate under the stewardship of billionaire Bernard Arnault’s family, LVMH disclosed that its fashion and leather goods segment recorded a modest 2% organic growth in the first quarter of 2024, amounting to €10.49 billion. This stands in stark contrast to the impressive 18% surge witnessed in the corresponding period last year, indicating a notable deceleration in performance for the conglomerate housing renowned brands such as Louis Vuitton and Tiffany.
LVMH noted a decline of 6% in like-for-like sales in Asia, excluding Japan, during the initial quarter of the year, while revenues in the US and Europe saw a modest 2% increase. However, sales in Japan surged by 32%, bolstered by a weakened yen. These figures reflect a cautious consumer sentiment, with many opting to exercise restraint on significant purchases amidst escalating prices and elevated interest rates.
Against a backdrop of geopolitical and economic uncertainties, LVMH expressed a blend of vigilance and confidence in navigating the current landscape. The conglomerate reiterated its commitment to a strategic approach centered on brand development, innovation, and investment, alongside an unwavering dedication to product quality, desirability, and distribution.
Despite LVMH’s resilience, its shares have encountered an approximate 11% decline over the past year, reflecting broader apprehensions within the luxury sector.
