Forecast-beating sales lift LVMH shares towards record high

(Reuters) - Shares in LVMH (LVMH.PA) climbed towards record highs on Tuesday, after the world’s biggest luxury goods company reported stronger-than-forecast revenue growth for the third quarter.
The shares were up 1.8 percent at 236.45 euros in early trading, near a record high of 239.65 euros reached in May.
The stock was also the top performer on France's benchmark CAC-40 .FCHIindex, with the CAC slipping 0.1 percent, and its gains pushed up shares in other luxury goods companies, with Kering (PRTP.PA) advancing by 1.6 percent.
“While this likely will be read positively across the sector, we think this performance sets LVMH ever more firmly as one of the best performers of the industry,” wrote JP Morgan analysts, keeping an “overweight” rating on LVMH shares.
FILE PHOTO: A woman buys a Louis Vuitton bag in a shop in Singapore May 19, 2017. REUTERS/Thomas White/File Photo
Deutsche Bank, Citigroup and Goldman Sachs also kept “buy” ratings on the shares.
LVMH, home to labels such as Louis Vuitton, Christian Dior and Moet & Chandon champagne, reported on Monday that third-quarter like-for-like revenues, which strip out currency swings and acquisitions or disposals, grew 12 percent from a year earlier to 30.1 billion euros ($35.4 billion).
That beat the 9 percent organic growth forecast in an analyst poll compiled for Reuters by Inquiry Financial and was in line with the previous quarter, in spite of a weaker showing by LVMH’s spirits unit and a tricky foreign exchange climate.
“Given LVMH’s size and diversity, the continued strong growth in 3Q despite tougher comparisons signals a positive demand environment amongst luxury consumers that is encouraging for the broader luxury sector,” Goldman Sachs analysts wrote in a note.
LVMH shares are up around 30 percent so far in 2017, beating an 11 percent gain on the STOXX Europe 600 Personal & Household Goods index .SXQP, which contains other luxury goods stocks.
Forecast-beating sales lift LVMH shares towards record high Forecast-beating sales lift LVMH shares towards record high Reviewed by Alexander Von Stern on 05:31:00 Rating: 5