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LVMH reported another consensus-beating Q1 22 figures, opening a good start to the year for the luxury sector.
The group’s performance in China has been impacted by the new resurgence of COVID-19 since March; however, LVMH is confident that sales will come back as quickly as restrictions are eased.
To date, the group has not seen the impact of inflation on consumer spending trends.
Companies: LVMH Moet Hennessy Louis Vuitton (MC:EPA)LVMH Moet Hennessy Louis Vuitton SE (MC:PAR)
LVMH published consensus-smashing FY21 figures and has opened strongly the FY release period for the luxury sector.
All businesses recorded a better-than-expected performance. Highlighting the spectacular performance in Fashion & Leather goods and a strong acceleration in the Watches & Jewellery division.
The strong desirability of the group’s brands and strong pricing power of Dior and LV will continue to support the top line and profitability. LVMH is confident in its ability to maintain its
LVMH has published a reassuring Q3 21. The overall growth was in line with expectations, highlighting that the F&L division has beaten consensus again. However, growth in W&J division was a little disappointing, mainly due to the temporary slowdown at Bvlgari in Asia.
The US and Asia continued to report double-digit growth, and the group is confident for now that the positive dynamic will continue.
LVMH isn’t exposed to sourcing shortages, even if it will need to absorb higher freight costs.
LVMH opened the H1 21 earnings period strongly for the luxury sector. All divisions beat consensus expectations. More importantly, the sharp top-line jump, the favourable geographic mix and the group’s major brands’ strong pricing power have resulted in a record-high profitability.
Although the group will increase investments in H2 21, healthy growth could enable the group to increase investments without hurting margins.
Benefiting from the strong appetites of Chinese and American shoppers for LV & Dior handbags and Hennessy cognac, LVMH published an impressive Q1 21 performance. In particular, sales in the most profitable Fashion & Leather division soared 52% organically yoy (+37% vs. Q1 19), trampling consensus expectations.
However, sales from Asia jumped 86% yoy and accounted for 41% of total sales. The group’s higher exposure to the Chinese market is a double-edged sword, and this sword is just becoming sh
LVMH has reported another good year despite the pandemic.
On the back of an “in line” top-line performance, the operating profit was almost €1bn above consensus expectations. The group’s impressive profitability was mainly driven by the incredible resilience of the F&L division and outstanding profitability of the group’s major brands, notably, LV and Dior.
The enduring demand for the iconic products of LV and Dior has confirmed again that both brands are on their way to catching up with Hermè
Companies: LVMH Moet Hennessy Louis Vuitton SE
The incredible sales growth in the F&L division and good improvement in Spirits have led the group to record a clearly better-than-expected quarterly performance.
The strong resilience of LV and Dior has confirmed again the strong appetites of Chinese and American consumers for luxury goods despite the pandemic.
The publication is giving better visibility for the coming periods and encouraging indications for the group’s soft-luxury peers.
LVMH has unexpectedly announced that it is no longer able to carry out the acquisition of Tiffany due to the intervention of the French government.
We believe that LVMH is still willing to buy Tiffany and the announcement was another move to seek for a reduction in price.
The group has published its financial accounts for H1 20.
Despite the heavier level of inventory impairment and fixed costs that have resulted in a lower-than-expected profit from recurring operations, most of the divisions illustrated a strong resilience. In particular, the group’s larger Maisons Dior, Louis Vuitton, and Hennessy showed a strong progression in China, Japan, and the US.
We confirm that the enduring desirability of major brands is moving the group into an excellent position to
The group has released healthy FY19 results, broadly in line with market expectations.
The remarkable performance in Fashion & leather division has continued to be the growth engine, highlighting the persistently strong demand for LV and Christian Dior.
However, the group has not given any indication of how the Coronavirus will affect its activity in China and beyond. China accounts for a third of the group’s business, the unpredictable consequence of the epidemic is our main concern.
LVMH has agreed to buy Tiffany for an equity value of c.€14.7bn.
This rare acquisition opportunity in hard-luxury will significantly enhance LVMH’s position in the attractive luxury jewellery market and also increase the group’s exposure in the US.
LVMH has reported better than expected sales and maintained its pace of growth in Q3. Organically, group revenue increased by 11%, boosted by a 19% jump in fashion and leather goods. LVMH has confirmed once again its high growth and strong profile.
LVMH has reported record growth in its fashion & leather division, which has underpinned its organic growth despite the slowing growth in wines & spirits. Margins were flat yoy. The group remains confident with its outlook.
LVMH has stepped up its sales by 11% lfl (+16% reported) to reach €12.54bn. Leather goods were the outperformer, growing by 15% lfl, led by LV and Dior.
LVMH has well done in Q4, stepping up its sales by 9% lfl. Full-year organic growth came to 11% and full-year sales amounted to €46.8bn. The recurring operating margin increased by 190bp to 21.4%, returning a recurring operating profit of €10bn (+20.6%). The dividend to be distributed is €6 per share (+20% yoy).
Research Tree provides access to ongoing research coverage, media content and regulatory news on LVMH Moet Hennessy Louis Vuitton SE.
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• Financial performance: Group revenue of £1,982.8m is +13.6% YOY and +41.3% versus FY20, representing significant market share gains versus global apparel markets that remain below pre-pandemic levels (UK: +27.3% versus market -3%, US +3.8% versus market -9%). The UK delivered a standout performance +27.3% YOY with strong growth across both established and new brands. Demand in international markets has been impacted by extended delivery times due to constrained airfreight capacity, a headwind
Companies: boohoo group Plc
H1 results confirm a strong recovery in store sales and a bounce back in profitability, benefitting from 26 weeks of uninterrupted trading. The Group is now debt free and has reinstated its dividend, with an interim distribution of 2.5p declared and scope for further special dividends and share buybacks.
Companies: Shoe Zone PLC
We publish our more detailed forecasts for Victoria following the FY trading update and completion of the carve-out and acquisition of the Rugs and UK Carpets division of Balta Group NV. FY2022E has been flagged with revenues in excess of £970m, underlying EBITDA in excess of £155m and underlying EBIT in excess of £100m. For FY2023E, management expect EBITDA in excess of £200m. Whilst demand into FY2023E has remained strong, the shares have weakened on thoughts of tightening consumer expenditure
Companies: Victoria PLC
Companies: Made.com Group PLC
Zytronic’s interims confirm a continuing improvement in demand, driven by the Gaming and Vending sectors. This has driven a 24% increase in H1 revenue and a profitable outturn (PBT of £0.4m), on track for our full year forecast (SCMe: £1.0m) despite ongoing and well publicised supply chain challenges. Longer term recovery potential remains substantial and the Group is in excellent financial shape (net cash £7.5m post recent share buy-back programme).
Companies: Zytronic plc
Good H1 figures and the turnaround plan on track make the risk/reward tilt upwards given the recent underperformance against BAT. However, we continue to believe that IMB’s combustible focus strategy is not the right one and we see much more positive catalysts when looking at BAT.
Companies: Imperial Brands PLC
The Character Group (Character) reported a 22% year-on-year (yoy) increase in sales and an improvement in profits in the first half to February 2022, despite the ongoing impact of Covid in China (where most of the group’s manufacturing is conducted) and supply chain issues. Investment in finished goods has significantly increased to ensure product availability in H2 but the Group still generated operating cash, ending the period with net cash of £21.5m after a £13.6m share buyback.
Companies: Character Group plc
Feature article: Latest ONS survey: steady as she goes…and ignore retail investors at your peril
The ONS (Office for National Statistics) has been charting the beneficial ownership of UK-quoted companies periodically since the early 1960s. The latest paper was published in March 2022, and considers the data for December 2020.
At December 2020, “Rest of the World” investors owned 56.3% of the market, a further growth since the last survey, while UK institutions’ ownership edged up to 31.6%.
Companies: VTA TRX SCE STX AVO ARBB PANR RECI PCA OCI IBT ICGT FAS FCSS FEV FJV FSV DNL CLIG BBGI
Companies: Accrol Group Holdings plc
e client of Hybridan LLP
Dish of the day
BSF Enterprise. Following the successful reverse takeover of 3D Bio-Tissues Limited, a tissue engineering business based in Newcastle, UK, the Company announces admission of the enlarged group to the standard segment of the Official List and initiation of trading on the Main Market under the ticker ' BSFA '. The Admission follows a placing which raised £1.75m at a placing price of 7.37 pence per share.
No Leavers Today.
What’s cooking in
Companies: VANL TYM ACSO CCS FNTL SOLI TRAC ECK KIBO OSI
Today’s AGM update highlights a satisfactory start to the year. Against a worsening consumer backdrop and further supply chain disruption sales are up 2% and gross margin has nudged up. This reflects favourably on management and the strategy reset. With 80% of profits generated in H2 we leave our forecasts unchanged for now but clearly much will depend on the state of consumer demand in the months ahead. We expect to get better clarity with the H1 update in July but equally, geographic diversity
Companies: Portmeirion Group PLC
Accrol has delivered a robust trading update despite clear inflationary pressures on the business during the period. As a result, we are increasing our FY23 and FY24 revenue forecasts to reflect higher levels of activity and product inflation. Our headline earnings numbers remain unchanged following this update, albeit with growing confidence in FY23. We believe the shares look undervalued in what remains a strategically important player in the industry.
Residential-for-rent developer and manager Watkin Jones has confirmed it
is on track to meet FY2022E expectations of rising profits in today’s interim
results, which showed an 8% rise in revenue and a temporary decline in
adjusted PBT, reflecting previously signalled timing and mix of sales. We are
maintaining our estimates for FY2022E-23E, which show 21% compound
growth in PBT. Longer term, we expect further growth fuelled by increasing
demand for rental property from tenants and internat
Companies: Watkin Jones Plc
A reassuring trading update confirms that SuperGroup continues to deliver attractive top-line growth. Admittedly, the superior wholesale performance means (as previously flagged by the company) that there is likely to be some gross margin erosion, but the focus on operational leverage should still ensure a modest improvement in operating margins going forward. Management’s commercial and pragmatic approach to expansion should mean continued success as the brand rolls out beyond its core markets
Companies: Superdry PLC
FY21A Results were well flagged in November’s trading update. Today’s announcement reveals the Group is now debt free and reiterates its intention to return to the dividend list in the current period. Shoe Zone has a clear and well-defined plan to transform its store portfolio and grow its digital offer through its shoehub platform, which we believe will deliver a well-balanced retail model that can win market share and drive profitable growth.