By Peter Nurse
Investing.com - Shares in LVMH Moët Hennessy Louis Vuitton SE (EPA:LVMH), the world’s largest luxury firm, soared in early European trade Thursday after it reported a sharp rise in first-quarter sales, helped by strong demand from China.
At 05:55 ET (09:55 GMT), LVMH stock rose 4.5% to €874.40, trading near to its record high. Its shares are up almost 30% year to date, resulting in a market capitalization of €438 billion (€1 = $1.1025) - more than double its level three years ago.
The French company, which owns brands like Louis Vuitton and Dior as well as Hennessy cognac and U.S. jeweler Tiffany, reported a 17% rise in sales for the three months to end-March, more than double expectations.
LVMH pointed to sales growth of 14% in Asia, excluding Japan, compared with an 8% decline in the fourth quarter of last year, with the company looking to China for much of its growth this year.
China, which is a crucial market for the high-end products sold by LVMH, was hit by a wave of COVID-19 cases in the prior quarter following a sudden decision to lift pandemic-era health restrictions.
Sales in Europe also impressed, with growth of 24%, while business in the U.S. was more subdued, growing by 8% in the quarter.
Most of the U.S. growth came from its Sephora retail chain of beauty stores, according to LVMH finance chief Jean-Jacques Guiony.
"For the rest, the business is slowing down a bit," he added.
Begin trading today! Create an account by completing our form
At One Financial Markets we are committed to safeguarding your privacy.
Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.
Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.
Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.
By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.