Shares of lvmh drop 5% as full-year results throw doubt on broad luxury recovery

Shares of LVMH Retrated on Wednesday as Investors Remained Cutious About A Sweeping Luxury Sector Rebound Following Slightly Better-Chettely Better-Che-Expected Annual Results from the World’s Luxury Company Company Company Company.

The Owner of Brands Including Louis Vuitton, Moët & Chandon and Hennessy Posted Revenues of 84.68 Billion Euros ($ 88.27 billion) for 2024, exceeding the 84.38 billion euros forecast by lseg analysts and equating to Organic Growth of 1% Versus the Previous Year.

LVMH Shares Pared Losses Slightly to Trade Down 5.42% by 11:00 AM London Time. Fellow Luxury Goods Stocks Kering and Christian Dior Dropped 5.82% and 5.06%, respectively.

Investors have been looking for further confirmation of a recover in the luxury sector after cartier owner Richemont Reported its “Highest Ever” Quarterly Sames Figure Over the Festive Shopping Period. However, declining sales in lvmh’s critical fashion and leather goods and wines and spirits segments pointed to continued pressure within the group.

“After A Stellar Start to the Reporting Season for the Luxury Sector, Anticipation Had Been Increasing Ahead of Lvmh’s Q4 Results, Which is seen as the proxy for the sector. Ming set of results yesterday evening, “said Mamta Valechha, Consumer Discretionary Analyst at Quilter Cheviot.

LVMH on Tuesday Attributed its Revenue Growth to Solid Demand Within Its Selective Retailing Division – Which incidences retailer Sephora – and Perfume and COSMETICS. Growth was also broadly Driven by Consures in the US, Europe and Japan, While The Wider Asia Pacific Region – and Notable China – Lagged.

“Sentiment Among Wealthier Shoppers has Recovered in Europe The Us and Japan but in China, which has been the powerhouse for the luxury sector it’s still been weaker. Luxury Ship Chugging forward, “Susannah Strener , Head of Money and Markets at Hargreaves Lansdown, said.

The French Luxury Goods Giant is Seen as a Bellwater for the Wider Luxury Industry, which has decided signed significant pressure over recent years recent years amid declining China sales and broader macroeconomic headwinds.

“While lvmh saw a sequational improvement, it was less pronounced compared to richemont and burberry,” Quilter Cheviot’s Valechha Continue. “Had lvmh been the first to report this earnings season, this set of results would have been digested well. However, peers had hand alredy set the bar high, so it is unsurprising to seeks shares davn this

Luca Solca, Senior Analyst for Global Luxury Goods at Bernstein, Said Tuesday’s Earnings pointed to a Continued Divergence Best and the Rest in the Luxury Sector, Adding that Lvmh Had ” Ket Share – Particularly in its prestigious handbags Segment.

“If you look at the organic growth gap between the jewelry Maisons of Richemont and the fashion and leather goods segment of LVMH, you see that this has continued to increase,” Solca told “Squawk Box Europe” on Wednesday.

“That is clear a message that there’s work to do. And we think that the most important work to do is at dior, which has been increasing prices significantly and it’s no longes no.”

Shares in lvmh are currently up Around 14% year-to-date. Earlier this month, the group surpassed danish pharmaceutical giant Novo Nordisk To regain the title of europe’s most valuable company.