LVMH Shares Rise After 3Q Beats Expectations -- Update

--Shares in LVMH trade higher after the luxury giant reported third-quarter revenue

--The French group did better than analysts expected despite the protests in Hong Kong and other market pressures

--The results are reassuring, an analyst said

By Cristina Roca

Shares in LVMH Moet Hennessy Louis Vuitton SE (MC.FR) traded higher Thursday after the luxury-goods giant beat analysts' expectations for third-quarter revenue despite toughening conditions for luxury players.

The French conglomerate said late Wednesday that it had revenue of 13.32 billion euros ($14.61 billion) for the quarter, rising from EUR11.38 billion the year previous and beating analysts' expectations of EUR12.81 billion, according to a consensus estimate provided by FactSet.

The strong result confirms the group's resilience in the face of toughening markets, assuaging investors' fears, Bryan Garnier analyst Loic Morvan said.

At 0852 GMT, shares in LVMH traded 4.7% higher at EUR373.70.

LVMH's revenue grew organically by 11%, spearheaded by key fashion and leather-goods brands Louis Vuitton and Dior, JPMorgan analyst Melanie Flouquet said.

LVMH's fashion and leather-goods division defied external pressures including the Hong Kong protests and market softness in the U.S., Ms. Flouquet said. It remained the group's fastest-growing division, growing organically by 19% in the quarter. The division is high-margin, which bodes well for the group's profitability in the second half, Morgan Stanley analyst Edouard Aubin said.

LVMH, which also owns the Bulgari and Hennessy brands, said its Asian businesses made good progress despite the disruption in Hong Kong.

Write to Cristina Roca at [e-mail]; @_cristinaroca

(END) Dow Jones Newswires

October 10, 2019 05:09 ET (09:09 GMT)

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