LVMH, the world’s biggest luxury-goods maker, reported third-quarter revenue that beat estimates, led by a stronger-than-expected performance in fashion and leather goods.
Sales rose to €9.14 billion ($10.2 billion), the Paris-based maker of TAG Heuer watches and Hennessy cognac said in a statement Monday. Analysts had predicted €8.92 billion, according to the median of 21 estimates in a Bloomberg survey. Revenue climbed 6 percent on an organic basis, compared with the 4 percent median estimate.
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The owner of Louis Vuitton handbags was boosted by its fashion and leather-goods unit, where sales rose 5 percent in the quarter, compared with the 2 percent median estimate. The company last week took over German suitcase maker Rimowa for €640 million — a move that Deutsche Bank analysts have said may either postpone or reduce the size of a potential share buyback.
“Asia, excluding Japan, showed a significant improvement during the quarter,” LVMH said in the statement. “The US remains well positioned, as does Europe, with the exception of France which continues to feel the impact of a decline in the number of tourists.”
Shares of the company, whose full name is LVMH Moet Hennessy Louis Vuitton SE, rose 1.1 percent to €157.05 in Paris. The sales were released after markets closed.
(Source: Business of Fashion)