(News Bulletin 247) – The first capitalization of the CAC 40 generated revenues of 19.96 billion euros over the period, and its dynamics were lower than expectations.

LVMH kicks off the CAC 40 publication season. The number one luxury company posted growth of 9% like-for-like in the third quarter, a figure lower than expectations.

The French group, which owns 75 brands, including Louis Vuitton and Dior as well as the cognac Hennessy and the jeweler Tiffany, posted quarterly sales amounting to 19.96 billion euros, representing organic growth (on a comparable basis). ) of 9%, while analysts expected an increase of 11.5% according to a Visible Alpha consensus. This progression marks a clear slowdown compared to the organic growth of the second quarter (+17%).

In New York, LVMH’s ADR – certificates of deposit which allow investors based in the United States to invest in foreign groups – completely turned around following this publication. While it gained more than 3% before, the action is now down 0.6% at 5:53 p.m.

Bernstein analysts, however, believe that the group’s growth seems “in line” with the expectations of the “buyside” (investors, to simplify). The latter had apparently lowered their expectations, given the recent drop in LVMH’s stock market multiples (“derating”), they added.

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Fashion and leather goods below expectations

The fashion and leather goods division, which houses Louis Vuitton and Dior, recorded sales growth of 9%, slightly lower than analysts’ expectations of a 10% increase.

LVMH is facing weakening demand in the United States and Europe, where rising prices have led to a slowdown in the spending trend seen since the end of the coronavirus pandemic, while the recovery in China has been uneven.

Considered a barometer of the luxury sector, LVMH is the first group to publish its quarterly results, those of Hermes and Kering being expected on October 24.

Investors have recently lowered their expectations regarding the luxury sector and the stock market value of LVMH has fallen by around 96 billion euros since April.

The group, which established itself as Europe’s most profitable listed company more than two years ago, was dethroned by Danish drugmaker Novo Nordisk, the latter having benefited from the growth of its anti-inflammatory drug. -Wegovy obesity.

(With Reuters)