By Scott Kanowsky
Investing.com -- LVMH Moët Hennessy Louis Vuitton SE (EPA:LVMH) has posted better-than-expected second quarter revenues, thanks in part to a sharp uptick in demand in the U.S. and Europe that helped offset COVID-linked weakness in China.
The luxury group, which includes a wide range of high-end brands like Dom Pérignon and Bulgari, reported a 19% rise in organic revenue to €18.73B during the period. Analysts had predicted sales to come in at €17.59B.
LVMH said it was boosted by solid demand in Europe and U.S. for fashion and leather goods, in particular. However, Asia saw a slowdown in sales growth due mainly to COVID lockdowns in China weighing on customer activity.
The company's wine and spirits business also saw quarterly sales jump by 30%, as price increases and recovery in deliveries in the U.S. outweighed supply chain constraints. Selective retailing was given a lift as well from strong performance at LVMH's Sephora business.
Shares in LVMH increased marginally in early European trading on Wednesday.
Looking ahead, LVMH chairman and chief executive Bernard Arnault said the firm will approach the second half with confidence, but warned of headwinds stemming from geopolitical and global health risks.