LVMH shares fell at market close on Tuesday after the company failed to cheer investors with its latest financial results.
ADVERTISEMENTThe world’s largest luxury group, which is controlled by the family of billionaire Bernard Arnault, said its fashion and leather goods business grew 2% in the first quarter (Q1) of 2024 on an organic basis to €10.49 billion.
This compares to an 18% jump a year ago, however, marking a sharp performance decline for the company which owns Louis Vuitton, Tiffany and other big names.
LVHM said that like-for-like sales in Asia, excluding Japan, declined by 6% in the first three months of the year, while revenues in the US and Europe grew 2%. Sales in Japan, meanwhile, increased 32%, supported by a weaker yen.
It comes as many shoppers have been holding back on big purchases amid rising prices and high interest rates.
“In an uncertain geopolitical and economic environment, LVMH remains both vigilant and confident at the start of the year.
“The Group will continue to pursue its strategy focused on the development of its brands, driven by a sustained policy of innovation and investment as well as by a constant quest for quality in its products, their desirability and their distribution,” an LVMH press release said.
Shares in LVMH have fallen about 11% over the past year over sector concerns.