LVMH shares slump as Q1 sales fall

Investing.com - The ADRs of luxury goods maker LVMH Moet Hennessy Louis Vuitton SA (EPA:LVMH) ADR (OTC:LVMUY)  fell 7% on Monday after the company reported that total first quarter organic sales fell 3% to EUR 20.311 billion.  Analysts had expected growth of 2%.

"Europe once again achieved growth on a constant consolidation scope and currency basis," the company stated. "The United States saw a slight decline, despite a good performance in Fashion&Leather Goods and in Watches&Jewelry. Japan was down with respect to the first quarter of 2024, which had been boosted by strong growth in Chinese consumer spending in the country. The rest of Asia saw trends comparable to 2024."

Sales in its all-important fashion&Leather Goods segment fell 5% to EUR 10.108 billion.

Sales in the Wines&Spirits group fell 9%. Champagne was down slightly, while Cognac was held back by weaker demand in China and the United States.

The Perfumes&Cosmetics business group saw sales fall 1% organically.

The Watches&Jewelry business group saw sales flat on a year-over-year basis.

In Selective Retailing, sales were down 1% on an organic basis.