LVMH is back in fashion

LVMH, the luxury goods bellwether, reported strong sales. But are investors too optimistic about the outlook? Ben Judge reports.

The luxury goods bellwether reported strong sales. But are investors too optimistic about the outlook? Ben Judge reports.

"Luxury is back from the brink," says Andrea Felsted on Bloomberg Gadfly. LVMH, the Paris-listed firm that is the world's largest maker of luxury goods, saw first-quarter sales "beat expectations across every division". Revenues rose by 13% to €9.9bn, more than the €9.5bn that analysts predicted. China's economy is rebounding, Europe is "benefiting from a return of the travelling luxury consumer", and the market remains positive in the US. That said, the performance was to some extent "flattered by comparisons with a year earlier", when China's stockmarket was in turmoil and tourists were "abandoning trips to Europe" in the wake of terrorist attacks.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Ben Judge

Ben studied modern languages at London University's Queen Mary College. After dabbling unhappily in local government finance for a while, he went to work for The Scotsman newspaper in Edinburgh. The launch of the paper's website, scotsman.com, in the early years of the dotcom craze, saw Ben move online to manage the Business and Motors channels before becoming deputy editor with responsibility for all aspects of online production for The Scotsman, Scotland on Sunday and the Edinburgh Evening News websites, along with the papers' Edinburgh Festivals website.

Ben joined MoneyWeek as website editor in 2008, just as the Great Financial Crisis was brewing. He has written extensively for the website and magazine, with a particular emphasis on alternative finance and fintech, including blockchain and bitcoin. 

As an early adopter of bitcoin, Ben bought when the price was under $200, but went on to spend it all on foolish fripperies.