Advertise with

 The group's stock price was also on track for its best daily performance since July 2016.
The group's stock price was also on track for its best daily performance since July 2016.

LVMH shares react well to positive comments in results


By Sudip Kar-Gupta - Jan 31st, 11:07

LVMH shares surged high after LVMH struck a “cautiously” confident tone for the year and said sales had picked up in China in the fourth quarter.

LVMH shares were up about 5% in early session trading, lifting up the shares of other rival luxury goods companies such as Kering, Hermes and Burberry.

The group's stock price was also on track for its best daily performance since July 2016.

LVMH's results also showed that growth had picked up at its Louis Vuitton megabrand.

“LVMH reported good full-year results and provided full year 2019 outlook comments that we believe will be well received by the market and should bode well for the sector,” wrote Deutsche Bank analysts, keeping a “hold” rating on LVMH shares.

LVMH, also home to fashion brand Givenchy and champagne label Moet & Chandon, reported revenues of €13.7bn in the October-December period.

For the full year, LVMH's operating income rose 21% to a record €10bn, while it also hiked its 2018 dividend to €6 per share from €5 in 2017.

LVMH's billionaire boss Bernard Arnault said that LVMH was confident about 2019, although LVMH could “not control” the global environment.

“Management is seeing no China slowdown with January strong with ever-optimistic Arnault expecting a crisis but not this year. Strong, for now at least,” wrote brokerage Jefferies, keeping a “buy” rating on LVMH shares.

Business Live 

Read more about: shares | retailer | retail | lvmh | fashion | brand

Related News

Is Woolworths unravelling in Australia?
15/02/2019 - 16:35
The sudden departure of two Australia-based nonexecutive directors of Woolworths has fuelled speculation that the troubled retailer will be forced to announce another huge write-down related to the R21bn acquisition of the David Jones department store.

Latest retail sales figures show disappointing trend
15/02/2019 - 10:01
Available economic activity data has shown that the economy ended last year on a weaker footing, with December retail sales figures being the latest to disappoint, declining for the first time in nearly two years.

Woolworths denies that it copied Superlatte products
14/02/2019 - 12:10
Woolworths has categorically denied allegations by Michelle Legge, who founded beverage company Superlatte in 2016, that the retailer has copied her product.

New market store opens through the Pick n Pay market store
14/02/2019 - 11:51
The community of Thokoza welcomed the opening of Matlala Market and it will now offer customers greater variety, a fresh offering and money services under one roof and on their doorstep.

Strike adds to Dis-Chem’s Christmas woes
14/02/2019 - 10:33
Dis-Chem’s Christmas sales have been hurt by a strike, the pharmacy chain warned in a trading update.