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LVMH 1Q WRAP: Fashion & Leather Sales Beat Is Highlight 2014-04-10 05:43:42.544 GMT
By Heather Burke April 10 (Bloomberg) -- LVMH 1Q sales were a bit weaker than estimated, improved “where it really matters,” says UBS (buy). * High point a beat in Fashion & Leather sales, boosted by price increases; Louis Vuitton commentary suggests brand repositioning underway * Wines & Spirits main reason for sales being a bit softer than estimated, China cognac results shouldn’t be surprise
Bernstein (outperform): * Fashion & Leather sales “stellar,” progress in Louis Vuitton repositioning * Wine & Spirits, Watches & Jewelry, Perfumes & Cosmetics missed mkt ests. * Wine & Spirits “lackluster,” mainly due to Chinese retailers overstocking in 4Q13 * Negative FX of 500bps part of sales miss
Citi (buy): * Vuitton strength to help shrs even with S-T weakness in cognac, perfumes, watches * Acceleration in Fashion & Leather/Vuitton is positive outcome amid weak trends at soft luxury peers such as Prada, Gucci brand. Hugo Boss, Tod’s * 2014 consensus Ebit of EU6.45b may stay generally unchanged
* NOTE: Call tomorrow 3:30pm CET +44 (0) 207 107 1613 or +33 (0)1 70 77 09 34
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To contact the reporter on this story: Heather Burke in London at +44-20-7673-2044 or hburke2@bloomberg.net To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net