LVMH climbed on the Paris Bourse on Friday, and with it the entire luxury goods sector, after publishing better-than-expected results the previous day, reassuring investors that the sector is resilient to the economic slowdown, particularly in China.

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16

h

52

the French luxury giant's share price was up

13.64% to 778.8 euros, adding 48 billion euros to its market capitalization. The stock is on course for its strongest daily advance since September 2001.

Hermès was also up

6,11

% and Kering

7,79

%. The European luxury goods sector was up

6,9

%.

LVMH, which owns brands such as Louis Vuitton, Christian Dior and Tiffany, reported sales of almost €24 billion in the fourth quarter of 2023, thanks to resilient demand for its high-end products.

Organic growth reached 10%, above the analyst consensus of 9% quoted by HSBC.

"The most high-end products are those for which there is the strongest demand in the world," LVMH CEO Bernard Arnault told analysts.

This publication was all the more reassuring as LVMH had reported in October, on the occasion of its third-quarter results, a clear slowdown in sales with weakening demand in the United States and Europe, and a sluggish recovery in China.

Chinese customers' appetite for European luxury brands has been a concern for investors in recent months. China's real estate crisis and high youth unemployment have dimmed the prospect of a rapid rebound in the world's second-largest economy after the COVID-19 pandemic.

Although Chinese tourists are no longer flocking to Europe, LVMH still appeals to the wealthiest travelers. "We're not particularly worried," assured LVMH CFO Jean-Jacques Guiony.

"The diversification of activities within the group, as well as operational flexibility and agility, in our opinion testify to the high quality of LVMH and should support the share" in the short term, stressed JPMorgan analysts in a note. (Written by Corentin Chappron, with Mimosa Spencer in Paris, Josephine Mason and Lucy Raitano in London, edited by Blandine Hénault)