People are walking by the Louis Vuitton storefront building in Lisbon, Portugal, on July 21, 2024.
Luis Boza | Nurphoto | Getty Images
Shares in the world’s largest luxury group LVMH fell on Wednesday after its second-quarter sales came in below analyst consensus on Tuesday.
LVMH shares were last down by 4.97% at 9:30 a.m. London time. Other luxury sector stocks, including Gucci-owner Kering which is set to report earnings on Wednesday, also retreated.
Quarterly sales came in at 20.98 billion euros ($22.7 billion) in the second quarter, compared to the 21.6 billion euros LSEG analysts were expecting.
Sales in Asia, excluding Japan, fell 14% in the second quarter from the same period a year earlier, LVMH said. Sales in the region had declined 6% in the first quarter of 2024.
Meanwhile, sales in Japan jumped 57% year-on-year in the three months to the end of June.
Across the first half of the year, sales in Asia excluding Japan dropped 10% compared to the first six months of 2023, while sales in Japan rose by 44%, LVMH said.
The company said the “exceptional growth” in Japan was boosted “in particular from purchases made by Chinese travelers.”
By business groups, wine and sprits revenue fell 5% in the second quarter of 2024 from a year earlier, and the watches and jewellery division declined 4% over the same time.
This is a developing story, please check back for updates.