PARIS (Reuters) – LVMH, the world’s largest luxury goods maker, posted organic sales growth of 1 percent in the second quarter, a result slightly below expectations that added to investor concerns over China’s lack of appetite.
The French group reported on Tuesday a turnover of 20.98 billion euros between April and June, compared to 21.21 billion euros in the same period last year.
The market was expecting 21.58 billion, according to an LSEG consensus based on estimates from six analysts.
The group’s fashion and leather goods division, which includes Louis Vuitton and Christian Dior and represents nearly half of the group’s sales and the bulk of its operating profit, grew by 1%.
This is a slight slowdown compared to the 2% increase recorded in the previous quarter.
LVMH, the second largest European stock market capitalization with 340 billion euros, is operating in a context of concern due to weak sales in the sector’s key market, China.
“While remaining vigilant in the current context, the group is approaching the second half of the year with confidence,” said Bernard Arnault, Chairman and CEO of LVMH, in a press release.
(Report by Mimosa Spencer, by Kate Entringer, edited by Augustin Turpin)
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