Flat Results for French Luxury Giant LVMH in Q1 Has Peers on Watch (TIF) (COH)
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Tiffany & Co. (NYSE: TIF), Coach, Inc. (NYSE: COH), Michael Kors (NYSE: KORS), and Ralph Lauren Corp (NYSE: RL) are just a few among many higher-end retail names on watch Monday following first-quarter results from French peer LVMH (LVMH Moët Hennessy Louis Vuitton).
Total revs in Q1 rose 6 percent to €6.94 billion, from €6.58 billion in the same period last year. Clean revenue growth (no M&A or foreign exchange impact) was at 7 percent. The numbers were in-line with analyst expectations.
Though top-line results were flat with views, there is an underlying story: LVMH's fashion and leather goods division saw just a 0.4 percent increase in sales, versus nearly 9 percent of growth reported in Q412. That segment includes the noted Louis Vitton brand, famous for its fashionable handbags.
Many believe the slump follows what China has been going through. Political transition and slowing growth have ebbed China's appetite for über-luxurious items as of late. Many retailers are still banking on strong China growth to fuel demand, something that might come under question in the next few quarters as once-rapid expansion has now cooled in the region.
LVMH's selective retail unit, which includes Sephora and DFS, saw a 16 percent jump to €2.12 billion for hte quarter, which the company attributed to a rise in Asian tourism.
Total revs in Q1 rose 6 percent to €6.94 billion, from €6.58 billion in the same period last year. Clean revenue growth (no M&A or foreign exchange impact) was at 7 percent. The numbers were in-line with analyst expectations.
Though top-line results were flat with views, there is an underlying story: LVMH's fashion and leather goods division saw just a 0.4 percent increase in sales, versus nearly 9 percent of growth reported in Q412. That segment includes the noted Louis Vitton brand, famous for its fashionable handbags.
Many believe the slump follows what China has been going through. Political transition and slowing growth have ebbed China's appetite for über-luxurious items as of late. Many retailers are still banking on strong China growth to fuel demand, something that might come under question in the next few quarters as once-rapid expansion has now cooled in the region.
LVMH's selective retail unit, which includes Sephora and DFS, saw a 16 percent jump to €2.12 billion for hte quarter, which the company attributed to a rise in Asian tourism.
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