LVMH rallies after earnings results top estimates amid improved demand in China

[Selective shot of the Louis Vuitton Building in Stuttgart City Germany]
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LVMH Moët Hennessy - Louis Vuitton, Société Européenne (OTCPK:LVMHF [https://seekingalpha.com/symbol/LVMHF]) (OTCPK:LVMUY [https://seekingalpha.com/symbol/LVMUY]) rallied after the company's earnings results topped the consensus expectations of analysts amid persistent uncertainty in the global economic and geopolitical landscape.

Organic sales growth rose 1% for LVMH's (OTCPK:LVMHF [https://seekingalpha.com/symbol/LVMHF]) fiscal third quarter. Improvement was seen across all business groups and most geographic regions, except for Europe, where revenue from tourist spending fell due to currency fluctuations. The core fashion & leather goods division, which includes flagship brands like Louis Vuitton and Dior, posted a smaller revenue decline of 2% year-over-year, an improvement compared to the 9% drop in the previous quarter. The selective retailing business group was the standout performer for the quarter, achieving 7% organic growth in Q3, while the wines & spirits, perfumes & cosmetics, and watches & jewelry business groups all posted organic growth between 1% and 2%.

The Paris-based company's sales in the U.S. rose 3% during FQ3, while revenue in Europe and Japan fell 2% and 13%, respectively. LVMH (OTCPK:LVMHF [https://seekingalpha.com/symbol/LVMHF]) management pointed to a notable recovery in demand in Asia during FQ3, particularly in mainland China.

LVMH (OTCPK:LVMHF [https://seekingalpha.com/symbol/LVMHF]) rallied 6.7% in U.S. trading following the release of the earnings report.

MORE ON LVMH MOËT HENNESSY - LOUIS VUITTON, SOCIÉTÉ EUROPÉENNE

* LVMH: Beneath 'Solid' Earnings Lies A Buying Window [https://seekingalpha.com/article/4828123-lvmh-beneath-solid-earnings-lies-a-buying-window]
* LVMH: Luxury's Luster Dims, Stock Still Too Expensive, Sell [https://seekingalpha.com/article/4827849-lvmh-luxurys-luster-dims-stock-still-too-expensive-sell]
* Historical earnings data for LVMH Moët Hennessy - Louis Vuitton, Société Européenne [https://seekingalpha.com/symbol/LV:CA/earnings]
* Financial information for LVMH Moët Hennessy - Louis Vuitton, Société Européenne [https://seekingalpha.com/symbol/LV:CA/income-statement]