The shares of the LVMH group have grown by almost 50% since the beginning of the year, dragging the luxury segment upwards. The share price has gone, in little more than nine months, from 253.3 euros at the beginning of 2019 to today’s 375.8 euros.
The historic phase of economic slowdown and the protests in Hong Kong, where luxury shopping is strategic, have not affected the growing trend of the multinational.
Strong of the brands in possession – including Louis Vuitton, Christian Dior, Bulgari, Kenzo, Givenchy, Céline, Guerlain, Kenzo, Loro Piana for the fashion segment – LVMH is guiding the entire luxury sector towards important profit targets.
The data released by the holding company on the gains obtained in the first 9 months of the year speak for themselves: all the business groups owned by LVMH show an increase compared to the same period of 2018.
In the official note on the trend in the first nine months of 2019, the French holding company announced a few days ago a general increase in revenues of 16% compared to the same period in 2018. Revenues reached a value of 38.4 billion euros.
Precisely following the official dissemination of the data, the stock recorded an increase of 4.5%. All LVHM sectors showed an upward trend and made an increase in profits. The wine and spirits sector grew by 10% and the perfumery and cosmetics sector by 11%. The watch and jewelery sector is also growing, with + 8% compared to last year.
The driving force of this positive trend is confirmed by the fashion and leather goods segment, which grew by 22% and earned almost 16 billion euros in the first 9 months of 2019. The fashion sector continues to drive LVMH in the luxury industry thanks to its business strategy and to constant innovation in the proposal of goods.
The ability to continuously innovate and always invest in new proposals for luxury has rewarded the multinational. The perfumery, watches and wine sectors, in fact, have been well placed in sales thanks to the innovations proposed on the market.
Innovation and geographical expansion are the key words of the company’s future strategy, as indicated in the official press release.