LV Is In Short Supply, Opening New Factory Shares To A New High Of 30 Years

Last year's strong performance, LVMH Mo? T Hennessy Louis Vuitton SE (MC.PA) Lu Wei Ming Xuan still recorded 11% double-digit organic growth in the first quarter, indicating that the company's focus on high-end consumer market is more resilient in the turbulent global environment.

The group's most profitable leather goods and fashion business grew by 200 basis points in the first quarter, down from 17% in the fourth quarter of last year to 15% in 2018.

This performance has been far ahead of market expectations under the adverse macroeconomic environment of global economic growth, such as a slowing down crisis and the rise of protectionism. The market has generally held a consensus on the sharp slowdown in the growth of the luxury market this year, and the French giant, as a weathervane of the industry, seems to have led analysts to change their minds.

The organic growth rate of cosmetics and perfume business 9% is much more than that of 14% double-digit growth in 2018.

This trend is still dominated by Chinese consumers. In the last three months of last year, China's cosmetics market was weakening, especially in December, even a rare 30 year minimum growth rate.

On the whole, the growth of pure fashion consumption of beauty and leather goods began to slow down on the basis of last year's high base.

However, the French giant said that the growth of Louis Vuitton Louis Weedon was still amazing. In order to meet the demand, the company added a 500 leather factory in France.

After the first quarter results were released, the market gave a positive return to the French luxury giant. On Wednesday, the company opened 3.26% euros and 340.50 euros in a big way, and the morning plate was a record high of 342.80 euros.

No Agency, a fashion research and consulting firm, pointed out in its report on Thursday that the Sino US trade friction agreement was close, the delay in European trade and the weariness of British consumers on the topic partly offset the risk brought by the global economic slowdown. In the first quarter of 2019, China and the US stock market recorded almost the best start of history, making the luxury goods consumption of more wealthy people in the stock market increased, thus raising the 200 year's base of the luxury industry in 2019, from -1-1% to 1-3%.

Tang Xiaotang, an analyst, said that the implementation of China's tax reduction and tax reduction was profoundly influential in 2019. It is believed that it will play an important role in improving the profitability of enterprises or the growth of consumption. It only needs to wait until the three quarter.

At the same time, he maintained the polarization of the luxury goods industry. He thought that some of the best performing groups such as Lu Wei Ming Xuan, Kering SA (KER.PA) Kai Yun group and Herm s International SCA (HRMS.PA) Hermes international group could continue to win the industry, while most of the enterprises represented by Prada SpA (1913, HK) Prada group, the group of Prada (Group), and the Italian company such as the Ferragamo group, etc., will maintain the previous losers' performance, reflecting the trend of the weaker Heng Qiang.

Gucci Gucci's parent company also opened a 1.22% Euro 530 euro on Thursday, with a record high of 536.50 euros and a 2.46% rise. The price of Hermes rose slightly higher, but then increased by more than 1%.

Prada group listed on Prada shares closed at HK $23 on Thursday, which also benefited from an increase of 1.32%.

The company just got a big song on Tuesday.

Citigroup believes that the weak performance of Italian company in the second half of last year has continued so far. Based on the expected difference between EBIT in the second half of last year and 10% in the second half of last year, the sales forecast for this year and next year was reduced by 3%, while the EBIT forecast decreased by 20% and 19% respectively. EPS forecast decreased by 26% and 23% respectively, while the target price of Italian company was significantly reduced from HK $26 to HK $23, maintaining a "neutral" rating.

Rogerio Fujimori, an analyst at RBC Capital Markets and Canadian capital market, said in its report on Thursday that the strong fashion and leather business of Lu Wei Ming Xuan is enough to boost the share price of French companies.

Societe Generale Group, France's rising bank, raised the rating of French giants from "holding" to "buying", and indicated that Lu Wei Hin's performance should continue to be better than its peers this year. The bank expects the industry to slow down in the first quarter, but as the world's largest luxury group, its growth in 1-3 months was 9% higher than the fourth quarter of last year, by 200 basis points.

After the market digested enough information, the stock price of Midway was further boosted up to 345.30 euros, up 4.72%, the highest in 30 years.

In the first quarter, the performance of the first quarter was flat. The main driving force of last year was wine and spirits. In the 1-3 month, the business of Lu Wei Min Xuan increased by 9%, an increase of 80% from 5% in the same period last year. The actual increase was more than 12.9%, from 1 billion 195 million euros in the first quarter of 2018 to 1 billion 349 million euros.

During the period, the sales volume of Hennessy Hennessy Cognac increased by 11%, and the market in China and the United States increased rapidly.

Sephora's first choice of retail sector in the first quarter increased by 8%, which is better than the 6% increase in 2018. The growth rate was 3% faster than that in the four quarter, and the actual growth rate was 13% to 3 billion 510 million euros in 2018.

During the period, the company continued to grow rapidly and expand its market share. DFS's first European City store in Venice, Italy, performed well in 2020 and will add another La Samaritaine department store in the group.

The clocks and jewellery businesses recorded an organic increase of 4% in the first quarter, the worst performing sector, and the overall data of the Swiss watch industry.

In the 1-2 months, the export of Swiss watches increased by 2.1% to 3 billion 385 million 200 thousand Swiss francs, of which the export of watches and watches increased by 2% to 3 billion 192 million 300 thousand Swiss francs, mainly due to the 2% and 1% decline in exports between China and Hongkong.

The French group said in a statement that in the strong 2019, the group will continue to concentrate on developing its own brand, while strictly controlling costs, and will focus on product quality, excellent performance and innovation and distribution, with a view to further consolidating the group's leading position in the luxury industry.

On Wednesday's closing, LVMH Mo? T Hennessy Louis Vuitton SE (MC.PA) Lu Wei Ming Xuan shares reported 329.75 euros, or 0.75%, corresponding to the 165 billion 829 million euro market value.

As of April 10th, so far this year, the stock has recorded a 27.71% increase, which is similar to the 27.21% increase of the rival Kering SA (KER.PA) Kai Yun group, while the 18.51% increase in December has lagged behind the 29.36% increase.

Author: He Wei