Investing.com - LVMH Moët Hennessy Louis Vuitton reported first quarter revenue of €19.1 billion, missing analyst estimates of €19.6 billion, as its crucial Fashion & Leather Goods division underperformed expectations. The luxury conglomerate posted organic revenue growth of 1%, falling short of the 1.95% analyst consensus, with total revenue declining 5.9% YoY on a reported basis.

Fashion & Leather Goods, LVMH’s largest division, saw organic sales decline 2% versus analyst expectations for a slight decline of 0.05%. The segment generated €9.25 billion in revenue, down 8.5% YoY and below the €9.48 billion estimate. The company attributed the weakness to the conflict in the Middle East, which negatively impacted organic growth by approximately 1% for the quarter.

LVMH ADRs fell 2.7% in New York trading following the results.

Watches & Jewelry emerged as a bright spot, with organic revenue growth of 7% exceeding the 4.21% estimate. Tiffany achieved strong performance, with its HardWear line posting particularly robust growth. Wines & Spirits also outperformed, growing 5% organically against expectations for a 0.83% decline, helped by a favorable Chinese New Year calendar effect for Cognac.

Geographically, Asia excluding Japan delivered 7% organic growth, surpassing the 4.2% estimate, while the US grew 3%, slightly ahead of the 2.9% consensus. However, Europe declined 3%, worse than the estimated 0.75% decline.

"LVMH remains vigilant yet confident at the start of the year," the company stated, emphasizing its focus on brand development through sustained innovation and investment.

Perfumes & Cosmetics revenue remained flat organically, missing the 1.74% growth estimate, while Selective Retailing grew 4%, below the 6.2% consensus.