LVMH Moet Hennessy Louis Vuitton (LVMHF) ADRs dropped more than 2.5% Tuesday after the company reported its first quarter results, showing a revenue decline.
During the quarter, revenue fell by 2%in reported terms year-on-year, coming in at €20.69 billion.
The French luxury conglomerate, which has brands such as Dior and Louis Vuitton under its umbrella, saw a 16% decline in wine and spirits revenue, while watches and jewelry revenue fell 5%.
Champagne was down, reflecting the normalization of post-Covid demand, while Hennessy cognac was "once again hampered by a cautious attitude among retailers, which limited their orders in an environment that remained uncertain in the United States," said LVMH.
On a reported basis, the company's fashion and leather goods segment revenue fell 2%. However, Perfumes and cosmetics and selective retailing revenue rose 3% and 5%, respectively.
"In an uncertain geopolitical and economic environment, LVMH remains both vigilant and confident at the start of the year," LVMH stated. "The group will continue to pursue its strategy focused on the development of its brands, driven by a sustained policy of innovation and investment as well as by a constant quest for quality in its products, their desirability and their distribution."