LVMH (OTCPK:LVMHF) shares tumbled 3.6% on Tuesday after reporting weak U.S. results for the second quarter.
Quarterly organic revenue for Q2 fell 1% compared to a year earlier in the U.S. while Japan saw an increase of 29%, Asia ex-Japan rose 34% and Europe grew 19% for the time period.
All business groups achieved double-digit organic revenue growth over the half year, except for wines and spirits, which faced a particularly high basis of comparison. In the second quarter, organic revenue growth was 17%, in line with trends seen in the first quarter.
“LVMH achieved outstanding results during a six-month period of ongoing economic and geopolitical uncertainty,” Chief Executive Officer Bernard Arnault said in a statement.
“We approach the second half of the year with confidence and optimism but will remain vigilant within the current environment and count on the agility and talent of our teams to further strengthen our global leadership position in luxury goods.”
Wine & spirits disappoint
The wine and spirits segment saw organic revenue down 3% and profit from recurring operations down 9% in the first half, the only area to see a contraction in sales. That segment was largely impacted by the United States’s economic environment and high inventory at the start of the year.
The luxury goods maker reported strong growth in business in Europe and Asia, as well as solid performance by Champagne. Fashion and leather goods saw organic revenue up 20% and profit from recurring operations jump 14% in the first half. Perfume, makeup, skincare and jewelry all delivered strong growth.
Shares of LVMHF are up nearly 41% over the past 12 months.