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    LVMH Market Weakness In France And Hongkong

    2016/4/16 16:34:00 29

    LVMHFranceHongkongMarket Quotation

    The first quarter sales figures of luxury goods giant LVMH (LVMH.PA) were worse than expected, as shopping activities in major markets such as France and Hongkong remained low.

    The first quarter sales of the group's fashion and leather products sector were flat, less than the original growth forecast of 2-3%, which includes Dior and

    Louis Vuitton

    And other brands are the biggest source of group revenue.

    The Department recorded a revenue growth of about 3% in the previous two quarters.

    Last week, consulting firm

    Bein

    It is predicted that the luxury market will hit a low point this year.

    However, LVMH's watch and jewellery department is eye-catching, with sales rising 7% in the first quarter, up 3% from the previous quarter, thanks to the re positioning of the tigheya brand and the success of smart watches, and the strong demand for Bvlgari jewelry.

    "The performance of the US market is strong. Besides the fact that France is affected by the downturn in tourism, the overall situation of the European market is still improving."

    LVMH said in a statement, "the Asian market is different, but the Japanese market is still moving forward."

    LVMH owns more than 60.

    Luxury goods

    In the first quarter, the group's revenue was 8 billion 620 million euros ($9 billion 830 million), lower than the average forecast value of 8 billion 720 million euros in Reuters poll.

    "Generally speaking, this is not particularly unexpected, because the LVMH group and its fashion and leather products sector are large and can be considered as representatives of the luxury industry, and the overall situation of the luxury goods industry is at a disadvantage."

    Exane BNP Paribas analyst Luca Solca said.


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