LVMH Q2 sales rose 3% as US demand softened Iran war hit
What's new: US sales climbed 6%, while Europe was flat and LVMH's shares fell 1.6% in US trading after the results.
LVMH posted a 3% rise in second-quarter sales, with stronger spending by affluent US shoppers helping the French luxury group counter weaker tourism-linked demand in Europe. Revenue reached 19.5 billion euros, roughly matching analyst estimates. The United States was the main driver, with sales up 6%, while Europe was flat as the Iran war weighed on travel and store traffic. Watches and jewelry led growth, rising 11%, with Tiffany and Bulgari posting gains in the mid-teens. Fashion and leather goods, LVMH's biggest profit engine, grew 1%, its first quarterly increase in two years. The company said the Iran war cut growth in that division by 1 percentage point. US-listed shares were down 1.6% after the report.