PARIS — Shares in LVMH Moët Hennessy Louis Vuitton fell sharply on Friday after the French luxury giant reported a 4.3 percent dip in net profits in the first half amid slowing Asian demand for fashion and leather goods.
LVMH shares closed down 6.8 percent to 131.65 euros, or $181.23 at current exchange, on the Paris stock exchange. LVMH had published its results after the stock market close on Thursday.
Thomas Chauvet, analyst at Citi, predicted the stock would take a significant hit as a result of the earnings miss; a larger-than-expected sequential slowdown in second-quarter revenue trends; continued destocking of cognac in China, and an unexpected slowdown in sales of fashion and leather goods in Mainland China and Hong Kong.
Chauvet forecast the consensus forecast for full-year earnings before interest and taxes (EBIT) of 6.36 billion euros, or $8.56 billion, would be downgraded by 5 percent to 6 percent as a result, though he reiterated his buy recommendation on the stock.
Crédit Suisse noted markets were unprepared for the sudden sales slowdown in Asia.
“We and the market knew that Japan would be a big factor,” it said in a research note. “But what really surprised us in the call was the magnitude of the sequential slowdown for Fashion & Leather across key Asian markets like Hong Kong, Mainland China and Singapore.”
“One quarter does not make a trend and we continue to see mid-single digit growth for LV as a sensible run-rate growth assumption especially in a sluggish environment for luxury goods in Asia-Pacific and Europe in particular,” Crédit Suisse added.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia