Why LVMH Moët Hennessy Stock Tumbled on Tuesday
Tuesday's market-moving news for global luxury-goods purveyor LVMH Moët Hennessy (OTC: LVMUY) wasn't very encouraging. After the company published a disappointing revenue update, investors assertively traded out of its stock. At the close of the day's action, it had lost almost 8% of its value. This was a far steeper drop than the 0.9% slide of the S 500 index.
Well before the opening of the U.S. stock markets, LVMH provided third-quarter, plus six- and nine-month, top-line revenue figures broken down by product category. There were more than a few minus signs in the sections comparing those results to previous periods.
In the company's third quarter, its overall top line fell by 3% year over year to just under 9.2 billion euros ($10 billion), due mainly to a 5% decline in its most critical product category: fashion and leather goods. Softening demand from consumers in China, once a reliably stable group, was a primary reason for the drop. Management also attributed it to lower growth in Japan, another key Asian market.
Source Fool.com
