LVMH drops 4% after earnings release ⌚

LVMH (MC.FR) shares are losing nearly 4% in today's session and are sliding to their lowest levels in six months after disappointing results from the luxury goods maker signalled that even the strongest brands are succumbing to slowing demand for high-end products.

LVMH's first half was weaker than expected, with sales and margins in most key divisions below consensus. 

The main aspects putting pressure on the company's shares were weak results in China, as well as an unfavorable FX situation. Cyclical profit margin in the first part of the year was 25.6% vs. 27.4% y/y. Source: LVMH

SECOND-QUARTER RESULTS

• Organic revenue +1%, estimated +2.89% 
• Organic sales of fashion and leather goods +1%, estimated +1.95%
• Organic sales of wines and spirits -5%, estimated -5.87%
• Organic sales of perfumes and cosmetics +4%, estimated +5.28%
• Organic sales of watches and jewellery -4%, estimated -2.85%

GEOGRAPHIC BREAKDOWN:

• US organic revenue +2%, estimated +3.5%
• Asia excluding Japan, organic revenue -14%, estimated -5.6%
• Organic revenue in Japan +57%, estimated +28.7%
• Organic revenue in Europe +4%, estimated +3.24%
• Revenues (Q2)  €20.98 billion, -1.1% y/y, estimated €21.41 billion

Source: LVMH

The company's shares are trading today near the lowest levels seen since early 2024. Source: xStation 

LVMH's weaker results today also hurt other luxury goods companies.

Source: xStation