PARIS -Luxury bellwether LVMH reported a slightly worse than expected 4% decline in quarterly sales on Thursday, though CFO Cecile Cabanis expressed confidence for the rest of the year.
Sales for the second quarter to the end of June fell 4% to 19.5 billion euros ($22.96 billion) compared with a consensus forecast for a 3% decline compiled by Visible Alpha, cited by UBS.
Sales at the group’s fashion and leather division, accounting for the bulk of profits, were down 9% amid a deepening gloom in the industry, below expectations for a 6% drop.
Chief Financial Officer Cabanis said on a call with reporters that she was still “rather confident” about the rest of the year as the group expected trade talks between the EU and the Trump administration to deliver good news soon.
Asked how LVMH would view a potential general tariff rate of 15% anticipated for exports to the United States, Cabanis said that would be an “overall good outcome for the general mood of our clients”.
With the exception of wines and spirits, where customers are much more resistant to price rises, Cabanis said LVMH’s brands, which include Louis Vuitton, Dior and Bulgari could draw on their pricing power to mitigate the tariff impact.
($1 = 0.8493 euros)
(Reporting by Tassilo Hummel;Editing by Elaine Hardcastle)
