Shares in LVMH slip on disappointing sales

The owner of numerous high-profile brands, including Tiffany & Co, Tag Heuer, Louis Vuitton and Moet Hennessey, reported first-half revenues of €42.2bn, a 15% increase year-on-year.

Profits from recurring operations rose 13% to €11.57bn, but that below consensus for around €11.78bn.

Within that, fashion and leather goods - LVMH’s biggest division - reported a 17% jump in revenues, while watches and jewellery were ahead 11%.

But wines and spirts fell 4%, after Hennessy cognac was hit by the weaker economic environment in the US and ongoing high stock levels at retailers.

Overall, US sales were down 1% in the second quarter.

As at 1030 BST, shares in the Paris-listed group were off 4%.

Bernard Arnault, chief executive, said: "LVMH achieved outstanding results during a six-month period of ongoing economic and geopolitical uncertainty.

"Thanks to the desirability of our brands, we approach the second half of the year with confidence and optimism but will remain vigilant within the current environment."

Deutsche Bank maintained its ‘hold’ rating on the stock. However, it trimmed the target price, noting: "Overall, we see this as a negative for expectations around continued earnings momentum and we reduced our 2023 estimated earnings forecast by -2%.

"We expect the share price to be down on the back of the changes in earnings momentum."