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(Bloomberg) -- Luxury-goods leader LVMH reported first-quarter sales that beat estimates as increased demand in Asia and North America helped the industry rebound from a multi-year slowdown.
Sales rose 15 percent to 9.88 billion euros ($10.5 billion), the maker of Dior fragrances and Hennessy cognac said after the Paris market closed Monday. Analysts had predicted 9.5 billion euros, according to the median of 17 estimates. Revenue climbed 13 percent on an organic basis, compared with the 8 percent median estimate.
The owner of Louis Vuitton handbags and the Italian textile maker Loro Piana was boosted by its fashion and leather-goods unit, where organic sales rose 15 percent in the quarter, compared with the 9 percent estimated by 16 analysts surveyed by Bloomberg. Revenue in the key unit, which generated more than half of the company’s 7 billion euros in earnings last year, had been unchanged in the same quarter of 2016.
The wines-and-spirits unit also came in significantly ahead of analyst projections, while organic sales in LVMH’s selective-retailing division, which includes beauty emporium Sephora and the tax-free airport retailer DFS, rose 11 percent, compared with the 8 percent estimate of 15 analysts.
“LVMH benefited from a favorable comparison base, particularly in Europe, where activity was affected last year by the impact of the November 2015 attacks in Paris,” the company said in a statement. “The trend currently observed cannot reasonably be extrapolated for the full year.”
Shares of the company, whose full name is LVMH Moet Hennessy Louis Vuitton SE, fell 0.9 percent to 207.45 euros in Paris on Monday. Financial director Jean-Jacques Guiony will discuss the results in a call with analysts Tuesday.
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