LVMH Boosted by China Demand as Louis Vuitton, Makeup Surge
Photographer: Andrew Harrer/Bloomberg
LVMH continues to get a boost from a luxury rebound in China, with demand for Louis Vuitton handbags and Dior perfumes racing ahead in the holiday season.
Fourth-quarter sales rose 11 percent on an organic basis, the Paris-based owner of luxury brands including Fendi and TAG Heuer said Thursday after markets closed, beating the median analyst estimate of 8.9 percent in a Bloomberg News survey. The stock rose as much as 3.7 percent Friday.
?We benefited from a highly dynamic Chinese market, which has continued to be the case in the very beginning of 2018,? Chief Executive Officer Bernard Arnault said at a briefing.
The performance of every division matched or beat estimates in the period, with the company citing rapid gains for cosmetics and makeup in Asia over the full year. Sales at French luxury conglomerates LVMH and Kering, the owner of Gucci, have been surging ahead of smaller competitors as investments in updating their products and reaching out to consumers online pay off. China has re-emerged as the industry?s growth engine after luxury sales slumped during a multiyear crackdown on corruption. LVMH?s full-year profit from recurring operations rose 18 percent to 8.3 billion euros ($10.4 billion). The company said it?s ?cautiously confident? for 2018 despite ?unfavorable currencies and geopolitical uncertainties.?
Less Upside"
?After the strong outperformance in share price since 2016, we see less potential upside in 2018,? w...
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