Tag Heuer – Capital Calls LVMH surges back to full health
Concise insights on global finance in the Covid-19 era.
BLING BOUNCE. LVMH (LVMH.PA) has bounced back with a vengeance from its pandemic sales sickness. The maker of $2,500 Speedy bags and $6,000 Tag Heuer watches on Tuesday reported first-quarter sales of 14 billion euros read more , 9% stronger than JPMorgan forecasts. That’s a chunky 32% rebound from the first three months of last year, when revenue dropped 15% year-on-year due to the Covid-19 outbreak. More importantly, it’s 11% higher than the first quarter of 2019, signaling Bernard Arnault’s conglomerate is back in rude health.
The bulk of the recovery came from a 45% jump in Arnault’s fashion and leather division, which makes up nearly half of sales and includes the iconic Louis Vuitton brand. That augurs well for rivals Kering (PRTP.PA) and Richemont (CFR.S), whose empires are more narrowly focused . Sure, vaccination campaigns in the West are not yet over. But if part of LVMH’s success rubs off, the bling sector’s 2020 sickness will be a thing of the past. (By Lisa Jucca)
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Earlier in Capital Calls:
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