LVMUY
📉 LVMH shares fell sharply (around 7%) after reporting an unexpected 3% year-over-year decline in Q1 sales, missing analyst expectations for slight growth.
👑 The disappointing results led to LVMH losing its position as the world’s largest luxury firm to rival Hermès.
⚠️ Management commentary suggested aspirational consumers are more vulnerable in uncertain economic times, impacting categories like wines, spirits, and beauty, though they maintain a solid growth outlook over the last six months.
@bernardodegarcia:
“Let’s go to TradingView because we catch them live and direct. Let’s go to MC… there we have it, shares of… if it pops up… there it is… LVMH Euronext are falling right now by 7% after presenting, as we said yesterday, their quarterly results, losing their position as the world’s largest luxury firm to rival Hermès after an unexpected drop in first-quarter sales. LVMH, as we covered yesterday, reported a 3% year-over-year decline in first-quarter sales, which was, well, suboptimal, so to speak. This has been… let’s see if we have it here… we have this drop, as you can see, practically everything was pre/post-market. This was due to their quarterly results published after the market closed yesterday, missing consensus analyst expectations for slight growth. Louis Vuitton’s CFO, Celine Cabanis, said on the earnings call that the group had not observed a major trend change in the first quarter and continued to experience solid growth in its last six months. She said, ‘It is true that the aspirational clientele is always more vulnerable in less positive economic cycles and uncertainties, and this could have had some impact in recent weeks, but rather in categories such as wines, spirits, and beauty,’ declared Ms. Cabanis, according to a transcript. She also refused to make specific comments on pricing in the second quarter but said she would consider using the pricing of goods as a lever to moderately offset inflation or fluctuations in different currencies. Honestly, these comments fall a bit like, ‘What are you telling me?’ since more than 50 or 60% of the revenue, which is luxury leather and others, well, had a drop of almost double digits. I don’t remember right now, we don’t have the tab open here… COVID pharma… no, we already closed it yesterday, but anyway.”
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