The luxury sector is upbeat, despite the setback from the shutdown of the Hong Kong market. The shares in LVMH Moet Hennessy Louis Vuitton SE traded 4.7% higher at €373.70 on Thursday, 10th October 2019 on Euronext, after having reported a better-than-expected third quarter revenue. The day before, LVMH had reported that its revenues for the Q3 of FY 2019 were at €11.38 billion as compared to €12.81 billion in Q3 of FY 2018, a 11% increase. The ripple effect also had a positive impact across the luxury sector, resulting in rallying of stock prices of Gucci owner Kering, Birkin-handbag maker Hermes, Germany’s Hugo Boss and Britain’s Burberry, Italy’s Moncler. Luxury watch brands like Cartier and IWC parent Richemont, Omega maker Swatch Group, which have major sales in Honk Kong, also profited from the rise in stock market. LVMH’s watch division slowed less sharply than expected.
LVMH’s booming sales in its fashion and handbag division, with a strong performance in the rest of Asia, Europe and the United States, has helped shrug the Hong Kong slowdown. Analysts from Morgan Stanley have pointed out that LVMH may be an outlier. The Company invested heavily in marketing and hot new designers for its top brands, Some analysts have cautioned that LVMH may be an outlier in the industry.