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.
“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
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast