{"id":57955,"date":"2026-07-28T11:21:10","date_gmt":"2026-07-28T11:21:10","guid":{"rendered":"https:\/\/www.europesays.com\/france\/57955\/"},"modified":"2026-07-28T11:21:10","modified_gmt":"2026-07-28T11:21:10","slug":"lvmh-fails-to-reassure-on-luxury-recovery-shares-fall","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/france\/57955\/","title":{"rendered":"LVMH fails to reassure on luxury recovery, shares fall"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Exterior photos of the Tiffany store at 150 Bloor St. West, is photographed on Sept 9 2020.Fred Lum\/The Globe and Mail<\/p>\n

Shares in LVMH slipped 1.5 per cent on Tuesday after the French luxury giant\u2019s \u2060second-quarter \u200bresults failed to reassure investors that a broader recovery in luxury demand was firmly underway, despite signs of improvement at its key fashion and leather goods division.<\/p>\n

The results left open the question of whether the luxury sector is emerging from a prolonged downturn, with growth at LVMH\u2019s \u200bmost profitable business still falling short of expectations.<\/p>\n

LVMH, the \u200cowner of fashion brands Louis Vuitton and Dior, said fashion and leather goods sales rose 1 per cent on an organic basis to 8.90 billion euros (US$10.12 billion) in the second quarter. While that marked the segment\u2019s first quarterly increase in two years, it missed analysts\u2019 expectations for growth of 1.7 per cent.<\/p>\n

\u201cAll the focus was on \u200cfashion and \u200bleather goods,\u201d a trader said after \u200cthe results.<\/p>\n

The group reported overall organic sales growth of 3 per cent for the quarter, \u200bhelped by an 11 per cent increase at its watches and jewellery \u2060division, its fastest-growing business.<\/p>\n

LVMH shares are trading near six-year lows and have \u2060lost about 30 per cent of their value this year, reflecting investor concerns over the pace of any recovery in luxury \u200bdemand.<\/p>\n

\u201cThe results were decent, but unlikely to change the debate,\u201d UBS analysts wrote in a note to clients.<\/p>\n

Brokerages including RBC, Morgan Stanley and UBS cut their target prices following the results.<\/p>\n

Morningstar analyst Jelena Sokolova said trends were turning more positive, although LVMH continued to lag some rivals.<\/p>\n

Kering shares are down around 17 per cent so \u2060far this year, while Hermes has dropped 21 per cent.<\/p>\n

The two groups\u2019 results, on Tuesday and Wednesday respectively, will be closely watched for further signs of whether luxury demand is recovering after a prolonged slowdown.<\/p>\n

LVMH said tourism-related spending in Europe was affected by the conflict between Israel and Iran, weighing on demand in a region that had previously benefited from international visitors.<\/p>\n

\u201cWhile recent performance \u2060has been disappointing, it is not unexpected given that backdrop. \u200bOver the longer term, we continue to believe LVMH is well positioned to return to industry outperformance,\u201d \u2060Sokolova said.<\/p>\n

Luxury strategist Rafael Carlesso said the fashion division\u2019s growth appeared to have been supported by pricing and cost discipline rather \u200cthan a meaningful improvement in demand.<\/p>\n

\u201cDiscipline is a finite lever. Desire is the renewable one,\u201d Carlesso \u200bsaid.<\/p>\n

LVMH\u2019s wines and spirits division, which includes champagne brand Moet & Chandon and cognac maker Hennessy, reported 5 per cent organic growth, while sales at its selective retailing division, which includes the Sephora brand, grew 6 per cent.<\/p>\n

Shares in spirits makers Pernod Ricard, Diageo and Remy Cointreau and \u200bcosmetics group L\u2019Oreal rose between 1 per cent and 2.7 per cent.<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Exterior photos of the Tiffany store at 150 Bloor St. West, is photographed…\n","protected":false},"author":2,"featured_media":57956,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12700],"tags":[1078,1067,1079,949,1058,1080,514,1057,1073,1074,1069,1059,1056,539,1034,825,1072,1065,1091,1060,1061,1071,1068,315,1063,4955,1081,12701,1064,1086,1087,1089,1084,1088,1082,1085,1062,1076,1077,346,1075,1083,1066,244,158,1070,946,90,1090],"class_list":["post-57955","post","type-post","status-publish","format-standard","has-post-thumbnail","category-lvmh","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-lvmh","tag-manitoba","tag-moet-hennessy-louis-vuitton","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts\/57955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/comments?post=57955"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts\/57955\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/media\/57956"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/media?parent=57955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/categories?post=57955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/tags?post=57955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}