Cosmetics group L'Oreal became France's most valuable listed company on Tuesday, surpassing Louis Vuitton owner LVMH as high-end luxury companies remain under pressure after years of slowing sales and lacklustre earnings.
Coach and Ralph Lauren are still growing because they understand what middle-class shoppers can afford.
American pop star Beyonce has acquired full control of the SirDavis whisky brand after French luxury goods group LVMH sold its stake to her, LVMH said on Monday, confirming earlier media reports in specialist trade publications.
LVMH sales for the first semester grew to €38.6 billion with an accelerated growth in the second quarter of 3%. Despite a fragile luxury sector, the group experienced strong growth in various segments, including its watches and jewelry division, selective distribution (which includes specialty retailer Sephora and French department store Le Bon Marché), and fashion and leather goods segment.
LVMH shares swung sharply on Tuesday, rising as much as 2% before reversing course to trade 2.56% lower after the luxury group reported second-quarter sales growth broadly in line with expectations. The results offered an important test of whether the $400-billion luxury sector is decisively emerging from a two-year downturn.
Shares in LVMH were seen falling 2% to 3% in premarket on Tuesday, after the French luxury giant reported overnight second-quarter sales that failed to convince investors about an imminent recovery at its most profitable division.
Tiffany & Co. is proving it's a good investment. LVMH reported a 9% growth in its watches and jewelry division, led by Tiffany and Bulgari.
