LVMH Needs Good Execution to Boost Sales

Dow Jones
10/13

0907 GMT - LVMH must execute well a plan to revive lackluster sales, Bernstein analysts say. The French luxury behemoth posted feeble top-line growth over the third quarter, dragged by a 5% slip in sales at the key fashion division, which makes up nearly half of group revenue. Group leadership seems well aware of the self-help measures needed in the face of a chilly macro backdrop, Bernstein's analysts tell investors in a note. "Management must now execute," the brokerage says, pointing to potential measures on pricing that could stoke demand for the Louis Vuitton brand. LVMH shares lose 1.4% following the update, trading at around 379 euros in morning trading in Paris.

 

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