{"id":38816,"date":"2025-04-15T11:37:09","date_gmt":"2025-04-15T11:37:09","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/04\/15\/lvmh-drops-8-on-sales-miss-as-geopolitics-hit-wine-fashion-revenues-kering-burberry-fall-too\/"},"modified":"2025-04-15T11:37:09","modified_gmt":"2025-04-15T11:37:09","slug":"lvmh-drops-8-on-sales-miss-as-geopolitics-hit-wine-fashion-revenues-kering-burberry-fall-too","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/04\/15\/lvmh-drops-8-on-sales-miss-as-geopolitics-hit-wine-fashion-revenues-kering-burberry-fall-too\/","title":{"rendered":"LVMH drops 8% on sales miss as geopolitics hit wine, fashion revenues; Kering, Burberry fall too"},"content":{"rendered":"
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Shares in LVMH dropped 8% on Tuesday morning after the French luxury giant reported an unexpected fall in first-quarter sales, triggering a sharp reaction across the European luxury sector.<\/p>\n

LVMH, which owns flagship brands including Louis Vuitton, Mo\u00ebt & Chandon and Hennessy, reported a 3% year-on-year decline in revenue for the first three months of the year, according to a trading update published after markets closed on Monday. <\/p>\n

The results missed consensus analyst expectations, which had anticipated slight growth, and fell short even of the most conservative forecasts among institutional investors.<\/p>\n

The downturn was led by a 9% plunge in the wines and spirits division, where sales of cognac\u2014an iconic product in the group\u2019s portfolio\u2014declined amid softer demand from both the US and China. <\/p>\n

The company attributed this partly to economic uncertainty but also to geopolitical tensions<\/a> that have seen cognac caught in the crossfire of trade disputes.<\/p>\n

Fashion and leather goods, traditionally LVMH\u2019s most resilient segment, recorded a 5% revenue dip. <\/p>\n

Watch sales were flat, offering no relief from the broader weakness in consumer appetite for luxury products.<\/p>\n

Wider sector under pressure; Kering, Burberry, Richemont fall too<\/h2>\n

The disappointing figures from LVMH dragged down peers across the sector. <\/p>\n

Shares in Kering, the parent company of Gucci, fell 2.5%, while British fashion house Burberry slipped 4.2%. <\/p>\n

Richemont<\/a>, known for Cartier and Montblanc, was down 2.26% in early trading. The broader European market, in contrast, traded higher, underscoring the specific pressure facing luxury firms.<\/p>\n

Analysts at Citi said there was “not much to cheer” in LVMH’s earnings, noting that the results were \u201coverall below the most conservative buyside expectations.\u201d <\/p>\n

They suggested it was hard to see a rebound in the second or third quarters given elevated uncertainty in the global economy.<\/p>\n

Jefferies cut its target price on LVMH from 670 euros to 510 euros, pointing to ongoing demand softness and an unpredictable macro backdrop.<\/p>\n

Trade instability clouds outlook despite pricing power<\/h2>\n

LVMH\u2019s Chief Financial Officer Cecile Cabanis told analysts during a call that trade tensions were making it increasingly difficult to plan, with key variables \u201cchanging every hour.\u201d <\/p>\n

The comment came amid fresh uncertainty over US tariffs, following mixed signals from President Donald Trump on trade policy.<\/p>\n

Luxury brands are generally seen as more insulated than mass-market retailers due to their pricing power and loyal customer base. <\/p>\n

However, analysts have warned that the risk of a broader economic downturn\u2014especially one sparked by tariffs\u2014could dent even high-end demand, particularly in major markets like the US and China.<\/p>\n

Bernstein analyst Luca Solca recenly sharply revised his forecast for global luxury sales<\/a>, projecting a 2% decline this year compared to an earlier estimate of 5% growth. <\/p>\n

He said the shift reflected a self-fulfilling cycle of market turmoil and weakening consumer sentiment.<\/p>\n

Solca also downgraded his earnings forecast for the sector, now expecting average EBIT to fall between 4% and 6% compared to 2024. <\/p>\n

Despite the gloom, he said luxury firms were still better placed than most to navigate a period of disruption.<\/p>\n

The post LVMH drops 8% on sales miss as geopolitics hit wine, fashion revenues; Kering, Burberry fall too<\/a> appeared first on Invezz<\/a><\/p>\n

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Shares in LVMH dropped 8% on Tuesday morning after the French luxury giant reported an unexpected fall in first-quarter sales, triggering a sharp reaction across the European luxury sector. LVMH, which owns flagship brands including Louis Vuitton, Mo\u00ebt & Chandon and Hennessy, reported a 3% year-on-year decline in revenue for the first three months of <\/p>\n","protected":false},"author":1,"featured_media":38817,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-38816","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/38816","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=38816"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/38816\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/38817"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=38816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=38816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=38816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}