LVMH sales figures spark investor concern

Published: 16-Oct-2013

Sales at Louis Vuitton have flailed in recent times


There is growing investor concern about the performance of luxury goods giant LVMH. While LVMH has been pursuing more acquisition quarry – the rumour mill now points to a stake in fashion designer J.W.Anderson – sales at Louis Vuitton have flailed. The worry is profound, given that it makes 50% of overall LVMH group profits.

Contrasting and comparing competitor performance makes for uneasy reading for LVMH investors: the luxury sector has climbed 20% since the start of 2013, but LVMH shares have powered forward by just 5% in comparison. LVMH earnings per share growth is expected to climb by 6%, in contrast to far more bullish full year figures of around 15% from competitors.

However, it’s not all gloom for Vuitton; the company recently confirmed a stake in British shoemaker Nicholas Kirkwood.

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