LVMH shares soared on strong earnings – Kommersant
[ad_1]
Shares of French luxury goods manufacturer LVMH Moet Hennessy—Louis Vuitton (LVMH) are up 11.8% in Paris after publishing quarterly and annual results. reporting companies. LVMH shares rise as reported Reutersincreased the company’s market capitalization by €27.6 billion and helped push the STOXX 600 index of European shares to its highest level in two years.
The market’s reaction to LVMH’s reporting was also strong because until now almost all market players were talking about a general decline in demand for luxury goods in key markets, and one of LVMH’s competitors, the British Burberry Group PLC, reduced its forecast for financial performance in 2023.
At the end of 2023, LVMH’s revenue grew by 13% to €86.2 billion, exceeding analysts’ forecasts. Profit from core operations increased by 8%, to €22.8 billion, net profit also by 8%, to €15.2 billion. A significant contribution to the growth was made by the successful work of the largest fashion and leather goods division, whose revenue increased by 14%. Revenue from the perfumes and cosmetics division grew by 11%. The wines and spirits division’s revenue fell 4%.
Back in September LVMH spoke about the decline in demand for champagne after the pandemic, noting that in many countries there is inflation, people are buying fewer expensive drinks. The French company also announced an increase in dividends from €7.5 to €13 per share. As for its outlook for 2024, LVMH chief Bernard Arnault said the company is going into it with confidence and expects sales to rise thanks to lower interest rates. Their growth may also be facilitated by the elections in the United States – this event, according to LVMH estimates, usually greatly revives the market.
[ad_2]
Source link
