By Mimosa Spencer
PARIS (Reuters) -Shares in LVMH were up by around 7% in early Paris trade on Friday following the French luxury giant’s latest quarterly report, lifting peers including Hermes, Kering and Pernod Ricard, which were all up by more than 3%.
LVMH posted a 10% rise in fourth-quarter sales on Thursday, driven by resilient demand – including from Chinese buyers – for its high-end fashion over the end-of-year trading period.
The results offered reassurance to investors of the luxury industry’s resilience in the face of economic headwinds and slowing demand after a long, post-pandemic splurge.
Investors grew skittish about the industry’s prospects following LVMH’s previous report in October which showed LVMH’s sales growth had slowed to 9% after a long spell of routinely outpacing expectations with strong double-digit growth.
With its latest report, LVMH “reassured — and coped nicely with a sharp slowdown in sales momentum” in the second half, Jefferies analyst James Grzinic wrote in a note to clients, adding that the report should be enough to “steady nerves in the near term”.
LVMH was top gainer on the euro-zone blue-chip STOXX50E index.
(Reporting by Tassilo Hummel and Mimosa Spencer; editing by Jason Neely)
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