LVMH Shares Fell After It Reports Slower Sequential Growth
11 October 2023 - 7:35PM
Dow Jones News
By Giulia Petroni
LVMH's shares tumbled on Wednesday after the luxury giant
reported slower sales growth in the third quarter as inflation and
high interest rates squeeze consumer spending, casting a shadow on
the sector.
At 0752 GMT, shares traded 5.9% lower at EUR690.10.
The French company reported quarterly organic growth of 9% on
year, down sequentially from 17% in the second quarter and below
analysts' expectations of around 11%.
The result is largely due to moderating growth in Europe and in
most countries in the Asia Pacific region, while the U.S. and Japan
showed broadly stable sequential trends.
"This exceptional momentum was never going to last forever, and
a 'normalization' was expected," Berenberg's Graham Renwick and
Luis Garcia say in a note. "Near-term uncertainty remains on when
sales and margin trends will stabilize, and the key debate now is
what a 'new normal' looks like for 2024 and beyond."
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
October 11, 2023 04:20 ET (08:20 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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