Shares in LVMH fell on Wednesday as an in-line increase in sales at the world's top luxury indicated the overall sector was moving towards a less impressive path of growth.
, a touch better than analyst expectations for 16% growth.
LVMH's leather goods division, home to Vuitton and Dior, grew revenue by 21% versus an expected 20% increase. The narrow beat for a company that had routinely delivered results ahead of expectations, and is regarded as a bellwether for the luxury industry, flagged the "normalisation" of the sector after years of stellar growth driven by post-pandemic euphoria, Luca Solca at Bernstein said.
"We never said that growing 20% per annum as we've been doing roughly speaking...is a new normal," LVMH chief financial officer Jean-Jacques Guiony told analysts on a conference call late Tuesday. The executive suggested the rate of the company's share price, up around 11.5% per year for the past three decades, was a better measure.LVMH reported a 1% fall in U.S. sales as appetite for high-end fashion and leather goods slowed there as well as lower-than-expected margins due to high marketing spending.at Vuitton -- LVMH said it plans to rein in marketing spending in the second half of the year to maintain flat margins.
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