A weaker demand for spirits and fashion has incorporated the luxury group LVMH in the first half of the year.
Sales fell by four percent to EUR 39.8 billion, as the company announced on Thursday after the A stock market in Paris. The business figures caused losses on the stock exchange. The paper of the EuroStoxx 50-heavy weight that has been under pressure for some time lost value in the first trade lesson.
In the wine and spirits business, the trade voltages between the key markets USA and China had burdened the demand, it said. Cognac, especially at Cognac, would have been noticeable. However, the decline weakened somewhat in the second quarter compared to the start of the year. In contrast, the business of the highest sales fashion and leather division was significantly weaker than in the three months earlier and was below the expectations of the analysts.
Group profit drops by 15 percent
The operational group profit, which was adjusted for special factors, fell stronger in the first half of the year than sales, namely 15 percent to around 9 billion euros. Here analyst had: Inside, however, an even larger decline. The bottom line is LVMH with 5.7 billion euros 22 percent less than in the corresponding period of the previous year.
Despite the decline in profit, analyst Zuzanna Pusz from the Swiss Bank UBS emphasized an impressive cost control in her eyes. However, business development remains difficult to predict in the second half of the year, and the risks with a view to the estimates for 2026 would have existed.
The LVMH share price dropped to a little more than two percent to 460 euros in the first minutes of retail. Finally, the paper was able to limit the minus to half a percent. This continues the floor formation attempt, which has been running of almost 437 at the end of June.
Note d. Red.: This post was updated on July 25th at 10.10 a.m.