The European luxury brand company LVMH, reported Q2 2023 earnings with revenues of 21.21 billion Euros, surpassing the expected 20.6 billion Euros. However, sales in the U.S. fell by 1%. The company stated that it doesn’t anticipate further price increases in the near term. Despite the drop in U.S. sales, LVMH expressed satisfaction with its Q2 performance in China.
Geographically, sales in Japan increased by 29%, in Asia-excluding Japan by 34%, and in Europe by 19% (vs 24% in Q1). But there was a reduction compared to previous rates.
By segment, the Fashion & Leather department saw an increase of 21%, slightly higher than expected(20.8%). Perfumes & Cosmetics, Watches & Jewelry, and Selective Distribution segments also saw growth, with increases of 16%, 14%, and 25% respectively. However, Wines & Spirits underperformed with a decrease of 8%, against an expected decrease of only 0.7%.
Shares of LVMH are up 25.6% this year. Looking at the daily chart above, the price is currently trading above the 100-day MA at 845.70. The all-time high reached $904.60 back in early April. A move below would increase the bearish bias.
After the close in the US, Microsoft and Alphabet will announce earnings along with Visa, and Texas Instruments.
Microsoft:
- Expected Q4 EPS: $2.55 up 14.3% YoY from $2.23.
- Expected Q4 Revenue: $55.48 billion up 7% YoY.
- Previous quarter performance: surpassed both EPS and revenue expectations.
- Comments: Best quarter anticipated in Microsoft’s 48-year history, with strength attributed to the cloud business and AI initiatives.
Alphabet:
- Expected Q2 EPS: $1.34 up 10.7% YoY from $1.21.
- Expected Q2 Revenue: $72.66 billion up 4% YoY.
- Previous quarter performance: revenue and earnings topped estimates after four straight quarters of missing expectations.
- Comments: Benefits from ongoing cost-cutting measures contributing to EPS growth.