LVMH delivers growth where decline was expected
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

LVMH delivers growth where decline was expected

LVMH’s core Luxury Brands, Louis Vuitton and Christian Dior, surprised analysts. While relying heavily on exclusive physical distribution, the Fashion & Leather division achieved +12% growth in the third quarter to September when most expected flat to negative. Indeed, positive surprises from LVMH’s highest margin (>30%) divisions which account for 57% of sales mean that cash generation is back on a growth track.

Strongly recovering mainland China luxury demand is the driving force behind the surprise. LVMH Managers also report that Golden Week demand, one of the main holiday and shopping peak for Chinese consumers, has been “strong” which bodes well for the coming Q4. The news has not been lost on other GT Luxury Consumer fund traditional luxury investments all of which over-index in China where consumer habits more quickly normalized post pandemic and returned on the long term structural trend trajectory. These holdings are currently up >3% while LVMH is up >6%.

LVMH is a core holding of the GT Luxury Consumer and GT Managed funds.


If you would you like to receive the Newsfeeds daily, please click here to sign up now!

Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
0.0/5 rating (0 votes)

Disclaimer
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.