LVMH Moet Hennessy Louis Vuitton, the world's largest luxury goods conglomerate, is scheduled to release its sales report for the third quarter on Tuesday. Analysts predict that the company will report sales of 20.48 billion euros ($21.69 billion) for the three months ending in September, surpassing last year's third quarter sales of EUR19.76 billion. UBS analysts anticipate even higher sales of EUR21.01 billion, representing a 6% increase compared to the previous year and a 12% organic growth.
What to Expect
Outlook & Demand: LVMH's third-quarter sales report will provide insights into the current performance of the luxury goods industry, which is facing challenges due to slower sales growth worldwide and economic factors such as high inflation and interest rates. Analysts believe that the company's results will give investors a reminder of what normalized growth rates look like.
China: The performance of LVMH's key Chinese clientele will be closely watched, particularly their shopping habits. Chinese consumers have been spending and traveling less this year, which can be attributed to the country's prolonged downturn in the property sector, weak exports, and reduced consumer demand.
Growth Distribution: While LVMH's fashion and leather goods business has been driving revenue growth in recent quarters, UBS analysts predict a more normalized performance from this division, expecting an 8% growth rate. On the other hand, the selective retailing and perfumes and cosmetics divisions are expected to report stronger growth rates of 32% and 12% respectively.
Overall, this sales report will provide valuable insights into LVMH's performance and industry trends.