LVMH reports 3.0% organic growth in revenue for Q1

LVMH (EPA: MC) – the company behind luxury fashion brand Louis Vuitton is in the red at writing after reporting its revenue for the first quarter.

LVMH did well in all major markets

The multinational reported €20.7 billion ($22 billion) in revenue as organic revenue popped 3.0% on a year-over-year basis in Q1.

LVMH said it was in green not just in the United States but in Europe, Japan and the rest of Asia as well. The French giant wrote in a press release on Tuesday:

A 2.0% annualised growth in fashion and leather goods business came in line with expectations today. LVMH stock is now down well over 10% versus its year-to-date high.

What else was notable in LVMH's Q1 update?

Comparable sales at watches and jewelry as well as wines and spirits were down on a year-over-year basis (2.0% for the former and 12% for the latter).

LVMH did offset that weakness with a 7.0% increase in its perfumes and cosmetics segment while selective retailing also came in up 11% for Q1 on Tuesday.

Note that analysts at HSBC recently told clients that LVMH needs upgrades for its stock to climb higher and those upgrades were not very likely to materialise any time soon. LVMH does, however, pay a dividend yield of 1.66% at writing.