The French luxury conglomerate recorded second-quarter sales of $22.2 billion, with its earnings report serving as a key barometer for the luxury goods industry. The results are signaling a potential rebound for the European luxury sector.
Key Takeaways
LVMH-Moet Hennessy Louis Vuitton reported an acceleration in second-quarter revenue growth, with organic sales rising 3% year-over-year to €19.52 billion. The French luxury giant, trading under the ticker MC, saw its shares increase by 1.10% following the news.
After a prolonged period of weak demand in the European luxury sector, this performance offers a much-needed respite. As the parent company of iconic brands like Louis Vuitton and Dior, the group is widely regarded as the global bellwether for luxury spending trends.
For the quarter ending June, total sales reached €19.52 billion (equivalent to $22.2 billion). Organic revenue grew by 3%, a significant improvement from the 1% organic growth recorded in the first quarter. This result surpassed the consensus analyst estimate of €19.45 billion, as compiled by research firm Visible Alpha.
The group's core fashion and leather goods division posted quarterly sales of €8.9 billion, up 1% year-over-year. This marks a clear turnaround from the previous quarter, which saw a 2% decline in the same division. For the first half of the year, LVMH's net profit stood at €5.7 billion, flat compared to the prior year, while recurring operating profit decreased to €8.7 billion from €9.01 billion during the same period last year.
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