LVMH and the Luxury Sector Turning a Corner

11 days ago

Chloe Malay

"Yeah, LVMH is up and the broader luxury sector is up this morning on hopes that it might be turning a corner. So, OVA, which is obviously very much a bell weather for that industry, had uh sales returned to growth in the third quarter, which was a positive surprise given expectations of a continued decline after a couple of tough quarters for LVMH. Um sales at all divisions actually exceeded estimates including the fashion and leather goods unit, which is the most important one, and even the wines and spirit division, which was struggling for a while, also posted revenue growth. It's also worth noting that sales in China in the region that includes China rose 2% which is a big turnaround for a region that has seen so much weakness as well over the last couple of years."

The speaker highlights that LVMH is showing signs of recovery as its sales return to growth, beating expectations across multiple divisions including fashion, leather goods, and wines & spirits, with a notable 2% increase in China. This commentary suggests improving conditions in the luxury sector.

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