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Investing.com -- Luxury goods giant LVMH (EPA:LVMH) saw its shares rise 3.8% on Friday after reporting first-half results that showed profit from recurring operations beating analyst expectations despite a revenue decline across most divisions.
LVHM on Thursday reported that revenue fell to €39.8 billion in the first six months of the year, down from €42 billion in the year-earlier period.
While overall sales results were in line with analyst expectations, the company’s core Fashion & Leather Goods division underperformed, with sales declining 9% on a constant currency basis compared to the consensus estimate of an 8% drop.
Despite this weakness, LVMH delivered a profit from recurring operations of €9 billion, exceeding analyst expectations by 2%.
LVMH said it remains confident in its long-term prospects but flagged ongoing geopolitical and economic uncertainty. The group will continue to focus on brand desirability and high product quality.
An interim dividend of €5.50 per share will be paid on Dec. 4.
Barclays (LON:BARC) maintains its Equal Weight rating on LVMH, citing a lack of clear positive catalysts at this point.
Sales were supported by steady local demand in Europe and the United States, but Japan declined following an unusually strong performance last year, while trends in the rest of Asia were broadly flat.
Fashion & Leather Goods, the group’s largest division, posted lower revenue and profit, with the company citing a tough comparison base and reduced tourist spending. Wines & Spirits also declined, dragged by weak cognac demand in the U.S. and China.
Sephora continued to grow, helping drive gains in the Selective Retailing segment. Watches & Jewelry and Perfumes & Cosmetics were broadly stable.