|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||101.21 - 102.15|
|52 Week Range||60.05 - 102.65|
|Beta (5Y Monthly)||0.82|
|PE Ratio (TTM)||36.52|
|Forward Dividend & Yield||1.18 (1.15%)|
|Ex-Dividend Date||Jul 02, 2020|
|1y Target Est||N/A|
Lockdowns and travel bans have smashed the luxury industry which depends on physical stores for the bulk of its sales. But LVMH Moet Hennessy Louis Vuitton SA (OTC: LVMUY) offered a glimpse of hope last week as it reported a smaller than predicted drop in revenues. The French conglomerate saw strong growth at its biggest fashion brands that buoyed revenue in the third quarter and managed to partially offset steep declines in other segments of the luxury empire that has been slammed by the pandemic.Third-Quarter Earnings Report On Thursday, the world's largest luxury goods conglomerate revealed sales of $14 billion, marking a 7 percent decrease. Analysts forecasted a 12 percent drop which would have taken a billion dollars off the statement of financial position. Despite a significant rebound, the world's largest luxury conglomerate still experienced a 7 percent drop in revenue compared to last year's quarter. Perfumes & cosmetics and selective retailing told an entirely different story as revenue dropped 16 percent and 29 percent, respectively. But the steady growth in online sales, growth in skincare for Guerlain and Dior, and a 'promising start' for the newly launched Fenty Skin provided a glimpse of hope as well as Sephora that gained market share in its main countries.Bright Spots A rebound in fashion and leather goods segments somewhat amortized the fallout. Organic revenue at fashion and leather goods, the largest division, increased 12 percent during the quarter. It's actually above the same quarter last year as some of the sales which were down by a third across the board during the first half of the year have been recaptured during summer. The wines and spirits division which houses Hennessy cognac and Moet & Chandon Champagne also proved to be more resilient than expected. Organic revenue fell 3 percent when analysts were expecting a 7.9 percent slump.Tiffany Drama LVMH, the world's biggest luxury company, stunned investors when it announced last month that it planned to pull out of a $16 billion deal to buy Tiffany & Co. (NYSE: TIF). The US jeweler unveiled positive sales trends in an effort to keep the deal on track as suits and countersuits are being filed in Delaware. The U.S. state is not only the constituency home for presidential nominee Joe Biden, but it's also where many corporations are registered in the U.S., often due to friendly tax rules. But LVMH stands firm in its opinion that conditions necessary to close the acquisition of Tiffany have not been met and that arguments that Tiffany brought out are unfounded. LVMH holds dividend payments as proof of Tiffany's mismanagement during the pandemic, suggesting that like other global firms, the jewelry retailer should have delayed them to conserve cash during these uncertain times.Tiffany's CEO Roger Farah shot back as he told Bloomberg this is LVMH's "blatant attempt to evade a contractual obligation to pay the agreed-upon price for Tiffany." This drama will be continued on January 5, the date set for a non-jury trial which is common for such corporate cases.Outlook It seems there are still consumers who are eager to splurge on luxury retail despite a gloomy economic backdrop. LVMH's major beauty brands have been somewhat resilient due to a rising trend in skincare that partially amortized a fall in both make-up demand and international travel purchases. But, retail will remain hampered by the suspension of international travel for the foreseeable future.This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases - If you are looking for full Press release distribution contact: firstname.lastname@example.org Contributors - IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: email@example.comThe post Glimpse of Hope for the Luxury Sector appeared first on IAM Newswire.Photo by Christian Wiediger on UnsplashSee more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * 3 Recent Electric Vehicle Headlines That Have Investors Buzzing * COVID-19 Took Another Bite From Walgreens, But It Left Better-Than-Expected Earnings(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Australian mining billionaire Andrew Forrest said his private company bought bootmaker R.M. Williams from a fund backed by French fashion giant LVMH Moet Hennessy Louis Vuitton SE <LVMH.PA>, returning ownership of the famed fashion label to its home country after six years. In a statement, the Fortescue Metals Group Ltd <FMG.AX> founder and major shareholder said he was "incredibly proud and humbled" to bring back the manufacturing icon which had "a long and proud history of high-quality Australian craftsmanship". Forrest did not disclose a price but the Australian Financial Review reported it was about A$190 million ($135 million).
Moody's Investors Service, ("Moody's") today confirmed Tiffany & Co.'s Baa2 senior unsecured rating. Tiffany's outlook is stable. "The confirmation of the Tiffany's Baa2 rating is based on LVMH stated intention to not complete the merger", said Senior Credit Officer, Christina Boni " Tiffany remains well positioned as it remains a standalone entity with excellent liquidity as it navigates the challenging operating environment globally " Boni added.