LVMH set for further growth despite uncertain global economic outlook
Investors will turn their focus to LVMH’s third quarter update on Tuesday to see if demand for luxury fashion goods continues to prevail despite an uncertain global economic outlook.
The fashion giant, which owns the likes of Louis Vuttion and Dior, started the year strongly with revenues up 15 per cent year-on-year in the first quarter as cash-rich shoppers splashed out on leather hand bags and other designer goods.
A revival in demand from China, after strict lockdown restrictions were lifted at the start of this year, has acted as a major boon for the business as US sales dipped.
While its makeup and fashion divisions have performed well, the conglomerate’s wine and spirit line has struggled slightly, with profit for the first half of the year from this arm falling nine per cent to £1.04bn (£905m).
Analysts at Deutsche Bank have forecast 12 per cent growth for the third quarter overall, but predict a two per cent decline in sales in its alcohol unit.