U.S. Demand Bolsters LVMH Amid European Slowdown

LVMH shows modest second-quarter sales growth, driven by strong demand in the U.S. despite weaker European performance. The luxury group experienced a 3% increase in sales, propelled by affluent American shoppers and growth in the Watches & Jewellery division. European challenges include the Iran war's effect on tourism.

Sales at luxury giant LVMH slightly increased in the second quarter, aided by strong demand from affluent U.S. shoppers that helped offset weaker spending in Europe, where tourism was adversely affected by the Iran war.

The financials displayed a 3% sales increase to €19.5 billion, aligning with analysts' estimates, as U.S. sales rose 6%, driven by new wealth generated by technology sectors. The group's Watches & Jewellery division registered the highest growth, with organic sales climbing 11%.

The modest growth reported by LVMH, the first major luxury group to release first-half results, failed to soothe investor concerns about the luxury sector's slow recovery from a two-year downturn, as U.S.-listed shares dipped post-results.