LVMH shares jump over Q4 massive sales growth

LVMH shares

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The world’s largest luxury goods giant, LVMH, saw its stock rise on Friday after reporting an uptick in fourth-quarter sales growth.

In early session trade, LVMH shares were up 3.9 percent, and the rally in LVMH also boosted shares of luxury goods rivals like Kering (PRTP) and Hermes.

LVMH, which owns brands ranging from Hennessy cognac to Sephora cosmetics, announced on Thursday that its fourth-quarter sales surged, hitting $22.31 billion total, with growth led by Louis Vuitton and Dior, the French group’s top earners.

On a like-for-like basis, the premium labels drove a 28 percent increase in sales of LVMH’s greatest segment, fashion and leather goods, exceeding analyst projections of 16 percent growth.

The company’s revenue in the last three months of last year was 51% higher than before the pandemic in 2019.

In 2021, Louis Vuitton reported revenue of 64.2 billion euros, increasing 44 percent from 2020 and 20 percent from 2019. Compared to 2020, organic sales growth was 36 percent, and 14 percent compared to 2019.

According to the company, the group’s organic revenue growth of 22% in the fourth quarter compared to 2019 shows the rapid growth of its activities, according to a press statement.

LVMH will propose a dividend of 10 euros per share at its annual general meeting on April 21, 2022.

Despite some positive business news, European stock markets fell on Friday, weighed down by the Federal Reserve’s recent hawkish tilt as well as concerns over Russia’s intentions in Ukraine.

By 08:40 GMT, the DAX in Germany was down 0.2 percent, the CAC 40 in France was down 0.6 percent, and the FTSE 100 in the United Kingdom was down 0.6 percent.

The shares of H&M (HM-B) jumped more than 5% after the world’s second-largest fashion retailer posted a higher profit than expected for the September-November period as sales rebounded and said it plans to treble sales by 2030.

The stock of Givaudan (GIVN) dropped 4.4 percent after the Swiss fragrance and flavour company announced a lower-than-expected increase in net profit and dividend for 2021.

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