LVMH sales jump 30% to beat market estimates in the first quarter
- LVMH sales jump 30% to beat market estimates in the first quarter.
- Tiffany & Co reports a 35% organic growth in quarterly revenue.
- Selective retailing notes a 5% decline due to COVID-19 restrictions.
LVMH Moët Hennessy Louis Vuitton SE (EPA: MC) said late on Tuesday that its sales in the first quarter topped market estimates, despite the Coronavirus-related restrictions. The COVID-19 crisis has so far infected more than 130 million people worldwide and caused over 2.9 million deaths.
LVMH shares opened a little under 3% up in the stock market on Wednesday and gained another 0.5% in the next hour. Including the price action, the owner of Sephora and Fendi is now trading at £530 per share. In comparison, LVMH had started the year at a much lower £445 per share. If you want to invest in the stock market online, you will need a reliable stockbroker – here is a list of the top few to make selection easier for you.
Tiffany & Co posts a 35% organic growth in revenue
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LVMH reported £12.13 billion of sales in the first quarter that represents a 30% growth (at constant currencies) on a year over year basis. In comparison, FactSet consensus for the French multinational’s Q1 sales stood at a lower £10.93 billion.
Compared to the first quarter of 2019, the luxury goods specialist saw an 8% annualised organic growth in Q1 sales. In separate news from Europe, investment bank Credit Suisse’s shares slid another 2% on Wednesday as Archegos-related stock unwind continued.
It was the first quarter after LVMH brought Tiffany & Co under its umbrella. The American luxury jewellery retailer posted a 35% growth in quarterly revenue on an organic basis. The core fashion segment that houses world-famous brands like Dior and Louis Vuitton, on the other hand, recorded an organic sales growth of 52% on a year over year basis.
Selective retailing noted a 5% decline due to COVID-19 restrictions
The core fashion division, as per LVMH, performed the strongest in the first quarter. All other segments, however, also registered positive organic growth in Q1, compared to the same period of last year – except for selective retailing that noted a 5% decline. LVMH attributed the decline in selective retailing to the ongoing health emergency that restricted tourism in Europe and pushed its stores to temporarily shutting down.
LVMH Moët Hennessy Louis Vuitton SE performed fairly upbeat in the stock market last year with an annual gain of more than 20%. At the time of writing, the Paris-based conglomerate is valued at £267.91 billion and has a price to earnings ratio of 65.51.