By Joshua Kirby
Shares in LVMH Moet Hennessy Louis Vuitton SE traded higher Friday morning and other luxury-goods stocks were also up after the French conglomerate on Thursday reported third-quarter sales that beat analyst expectations and showed positive growth in some areas.
LVMH, the world's largest luxury-goods company by value, on Thursday said quarterly sales stood at 11.96 billion euros ($14.05 billion), down 7% organically from the same period the previous year, but that the core fashion and leather goods division saw positive organic growth of 12%. Cognac sales also grew compared with the third quarter of 2019, the company said.
Analysts had expected sales of EUR11.37 billion, according to a consensus estimate provided by FactSet and based on four analyst estimates.
Shares in LVMH at 0744 GMT traded 6.8% higher at EUR430.35. Shares in sector peer Kering were up 3.7% at EUR587.50, while Hermes International SCA traded 4% higher at EUR802.60.
The results confirm LVMH's soft-luxury division as the benchmark for the sector, which is particularly relevant to Kering, say analysts at bank Jefferies. Overall LVMH's sales update should encourage a more positive view of the luxury-goods sector, which seems to have seen strong sales over the summer following the worst impacts of the coronavirus earlier in the year, according to brokerage Bernstein.
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(END) Dow Jones Newswires