LVMH Shares Rise After Results Show Revenue Growth Continues to Accelerate
January 28 2022 - 4:05AM
Dow Jones News
By Joshua Kirby and Cristina Roca
Shares in LVMH Moet Hennessy Louis Vuitton SE jumped in early
trading Friday after the luxury-goods giant said revenue growth
continued to accelerate at the end of 2021, leading to a much
higher annual profit.
At 0813 GMT, shares traded 3.4% higher at EUR717.60, having
risen as high as EUR733.90 early in the session.
The French conglomerate said Thursday evening that total yearly
sales came to 64.22 billion euros ($72.19 billion)--rising 14%
organically from EUR53.67 billion in 2019, before the Covid-19
crisis--confirming the company's pandemic recovery.
Analysts had expected total sales of EUR62.51 billion, according
to a FactSet-compiled consensus.
In the fourth quarter, revenue was 22% higher than in the same
period of 2019, accelerating from an 11% increase the previous
quarter. The core fashion-and-leather division again drove growth,
booking more than 50% higher revenue over two years, LVMH said.
LVMH's results suggest that the group has room for further
recovery, with the selective retail and perfumes-and-cosmetics
divisions still lagging behind 2019's results, Bernstein analyst
Luca Solca said in a note.
Net profit for the year stood at EUR12.04 billion, almost
tripling on year, thanks in part to an operating margin that
climbed to 26.7% of revenue.
LVMH said it is confident of maintaining the pace of growth in
2022.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
and Cristina Roca at cristina.roca@wsj.com
(END) Dow Jones Newswires
January 28, 2022 03:50 ET (08:50 GMT)
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