Shares in LVMH fell sharply on Wednesday, as analysts said that even though sales had risen at the world's top luxury group in the second quarter, there were signs that the overall sector was moving towards a more steady path of growth.
"While this is a solid growth rate in absolute terms, and impressive in the context of the scale of the base, it will likely trigger further questions among investors, as seen with Richemont last week, on whether we are now at the end of the positive earnings revision cycle for luxury and on the drivers of sector growth going forward once we trend back to a normal base," wrote analysts at JP Morgan.
LVMH shares were down 3.7% in early session trading, also dragging down the shares of its rival Kering.
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