(Boursier.com) — As usual, LVMH will kick off the quarterly season in Paris tomorrow after the close with the publication of its earnings for the first three months of the year. The ‘Bloomberg’ consensus expects revenue of 16.32 billion euros, representing organic growth of 17%. Analysts believe the world’s number one luxury brand should have outperformed its peers over the period despite the likely disruptions resulting from the health crisis in China and the war in Ukraine. The internal growth of the “Fashion and Leather Goods” division, the flagship division of Bernard Arnault’s group, is expected at 23%.
During the presentation of his 2021 results, the boss of LVMH had indicated that he was counting on the maintenance of solid demand in 2022, stressing that the group had a certain “flexibility” in terms of prices in the current inflationary context.
Morgan Stanley expects LVMH to have continued to “outperform” the rest of the industry at the start of the financial year and to have benefited, perhaps “a little more” than its competitors, from the reopening of post- Covid. Direct and indirect disruptions related to the war in Ukraine and the sanctions against Russia should have a relatively minimal impact so far. The bank also estimates that spending by Russian nationals worldwide represents less than 1.5% of LVMH group sales.
Stifel, for its part, is betting on an 18% increase in sales of the main “Fashion and Leather Goods” division on an organic basis, driven by “strong pricing momentum” as well as by demand for luxury products which is holding up well. Europe and the United States.
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