LVMH shares fall as luxury giant’s second-quarter results underwhelm

PARIS (Reuters) – LVMH’s shares fell on Tuesday, weighing on the broader European luxury goods sector, after the COVID-19 pandemic tore a hole into the Louis Vuitton owner’s second-quarter results.

LVMH reported late on Monday a slump in both its second-quarter sales and profits, and the company’s stock price fell by 3.5% in early session trading, dragging down the shares of rival Kering , which publishes results later on Tuesday.

“LVMH’s H1 2020 profit from recurring operations came in well short of analysts’ expectations and JPM estimates despite a beat on sales by 4%,” JP Morgan wrote in a note.

(Reporting by Sudip Kar-Gupta, editing by Louise Heavens)