LVMH Report Strong Gain in Sales, JD Sports Lifts Outlook

Sarla Buch
11 Apr, 2017
New York City

Givaudan said sales in the first-quarter soared 8% on improved sales in fragrances and flavors divisions. JD Sports net surged 83% on 31% jump in revenues and athletic retailer lifted full-year profit forecast. LVMH said revenues in the first-quarter surged 15%.

[R]4:00 PM Frankfurt – Givaudan said sales in the first-quarter soared 8% on improved sales in fragrances and flavors divisions. JD Sports net surged 83% on 31% jump in revenues and athletic retailer lifted full-year profit forecast. LVMH said revenues in the first-quarter surged 15%.[/R]

In London trading, FTSE 100 index increased 24.49 or 0.3% to 7,372.44 and in Frankfurt the DAX index edged down 5.63to 12,194.89.

In Paris, CAC 40 index edged up 2.82 to 5,105.04.

Givaudan SA jumped 3.6% to 1,885 Swiss francs after Switzerland-based fragrance and flavors maker said group sales in the first-quarter ending in March soared 7.7% from a year ago to 1.2 billion francs.

Comparable sales in the quarter increased 3.5% compared to the previous year.

The fragrance division sales rose 2.6% to 576 million francs and comparable sales increased 2.1% while revenues in the flavors business surged 12.6% to 666 million francs.

The fragrances maker said sales in the Asia Pacific region increased 2%, in Europe, Africa and Middle East jumped 6.1% and sales in North America soared 9.2% while sales in Latin America declined 3.4%.

JD Sports Fashion Plc soared 9.7% to 446.15 pence after the U.K.-based sports fashion and outdoor brands retailer reported revenues in the year ending on January 28 jumped 31% from a year ago to £2.4 billion.

Comparable store sales in the year increased 10%.

Net profit in the year surged 83.3% from a year ago to £178.9 million from £97.6 million and diluted earnings per share increased to 18.38 pence from 10.03 pence.

The retailer said administrative expenses in the year declined 74.9% to £6.4 million from £25.5 million in fiscal 2016 and operating profit advanced 140% to £246.2 million from a year ago period.

The sportswear retailer forecasted strong full year results after taking steps to expand across the Europe and said pre-tax profit is likely to beat market estimate by up to 15% on robust revenue growth.

“There is a market that has been favorable in terms of athleisure products, and we are in the best position to capitalize on it,” but “inflationary pressures are arising from Brexit,” said executive chairman Peter Cowgill.

LVMH Moet Hennessy Louis Vuitton SE gained 1.2% to €209.90 after France-based luxury conglomerate said revenues in the first-quarter surged 15% from a year ago to €9.9 billion and the company registered positive growth in Asia, Europe and in the U.S.

The luxury retailer said revenues in fashion and leather-goods division, including flagship brand Louis Vuitton jumped 15% to €3.4 billion, mainly from a favorable comparison base particularly in Europe.

However, revenues in the selective retailing also soared 15% to €3.2 billion from a year ago period.

Revenues in wines and spirits segment jumped 16% and revenues in perfumes and cosmetics business advanced 15% while revenues in watches and jewelry increased 14%.

Linde AG edged up 0.1% to €159.35 after Germany-based gas and engineering services provider again rejected request for shareholders vote in its annual general meeting.

Linde said “We appreciate our shareholders‘active involvement in the proposed business combination with Praxair, which is indeed important and currently still in the process of negotiation.”

The annual general meeting is scheduled on May 10 to discuss the planned merger with the U.S. rival and industrial gases producer Praxair Inc worth about $65 billion.