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On Friday, April 4, 2025, at the Mitsukoshi department store in Tokyo, Japan, Tokyo, Japan, Tokyo, Japan, Tokyo, Japan.
Bloomberg | Gets the image
Shares Lvmh On Tuesday morning, on Tuesday, 8% plunged after the world’s largest luxury group published an unexpected decline in the first quarter sales.
The company reported a drop 3% compared to last year Sales in the first quarter There is no expectations of consensus analysts for minor growth in the update of the trade published shortly after the market closing on Monday.
Wine and alcohol gained geopolitical tensions.
The key department of fashion and leather goods, which was 78% of the profit in 2024, reduced 5%. Sales of hours were equal.
Europe was the only region that recorded growth by increasing 2% on an organic basis. Asia, without Japan, was immersed by 11%, the US sales were 3%below, and Japan fell 1%.
The results reduced the wider sector in the early transactions Among the wide income on the market. Dry Shares reduced 2.5%, Sherber fell on 4.2% Richemont traded by 2.26% below.
Citi’s analysts Thomas Cheeve and Mahesh Mahankumar announced on Monday evening, noting that “not to cheer on a luxurious call,” with sales “as a whole below the most conservative purchasing expectations.”
They added that it was difficult to predict a consistent improvement in the second and third quarters either for LVMH or for the luxury sector, while the US and the world economic uncertainty remained elevated.
Jefferies, meanwhile, reduced the target price for shares to 510 euros ($ 578.62) from 670 euros.
A luxury sector that depends on global supply networks and demand for US consumers, there is confronted with a set of wind From the Flying Trade Policy of US President Donald Trump.
LVMH, which owns brands, including Louis Vuitton, Moët & Chandon and Hennessy, is the first major European luxurious firm that reported the profit in the first quarter after Trump announced a-then detained tariffs on its world trading partners.
Thus, investors are looking for an indication of forwarms forwarms recommendations on potential exposure to the cost of contributions and consumer demand.
LVMH Chief Financial CEO Sesil Kabanis told analysts on Monday, who calls that trading tensions complicates the group’s ability to do business, and the parameters “change every hour,” Reuters reports.
Expected that luxury brands will more protected than other retailers From the immediate impact of tariffs, with high -class labels can usually transfer additional costs to wealthy consumers.
However, analysts warn that the potential for the economic downturn caused by the tariff may largely weigh the demand in the key markets of the United States and China-more delayed recovery of the sector after a period of prolonged weakness.
