LVMH Q1 meets expectations, reassuring luxe sector
Updates shares, adds peers, milestone
** Shares in LVMH LVMH.PA rise nearly 2.6%, paring earlier gains, afterEurope's second-most valuable company's Q1 sales rose and roughly met forecasts
** Q1 revenue rises 3% organically to 20.7 billion euros ($21.99 billion), in line with consensus in organic terms, says RBC
** "Even the much-debated (Fashion & Leather Goods) division met investors at the bar ... possibly enough to reassure the more cautious investors," J.P.Morgan says
** "Looking ahead, we continue to view expectations for 2H24 top line acceleration as the key unlock for LVMH and the broader luxury sector," says RBC, adding that Paris Olympics could provide a boost
** LVMH shares head for their best day in over two months, if gains hold, and top France's blue-chip index CAC 40 .FCHI
** LVMH's peers shares opened in the black, but now the read-across is mixed
** Usually deemed most resilient to sector disturbances, France's Hermes HRMS.PA rises 1.7%
** Gucci-owner Kering PRTP.PA, which last month issued a profit warning , slip 0.4%
** Italian peers Moncler MONC.MI, Ferragamo SFER.MI rise 0.5%-1%, Britain's Burberry BRBY.L gains 1.9%, while Swiss Richemont CFR.S rises 1%
** Analysts flag negative read-across from weak Wines & Spirits unit performance - France's Remy Cointreau RCOP.PA slips 0.3%, while Pernod RicardPERP.PA inches up 0.6%, Britain's Diageo DGE.L flat
** Strong beauty, selective retail performance reads as "helpful" to the sector, analysts say
** L'Oreal OREP.PA rises about 1%
($1 = 0.9413 euros)
Reporting by Olivier Sorgho
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