LVMH shares jump 2.5% after reporting better-than-feared earnings, Texas factory plans

LVMH stock price

Bucking the determination trend, Europe's luxury stocks are rallying this morning, led by LVMH.

The French luxury behemoth was past seen trading 2.5% higher, paring earlier gains, aft its first-half net came successful supra estimates connected Thursday evening.  

The determination Stoxx Europe Luxury 10 scale has gained 1.6% truthful far, with shares of Gucci proprietor Kering adding 3% and Hermes rising by 1.2%.

Over the past six months, the scale shed much than 12% of its value.

— Chloe Taylor

In a enactment connected Friday morning, Deutsche Bank, Adam Cochrane, a luxury equity probe analyst, said LVMH's first-half results were "better than feared," arguing that the company's net trough was approaching.

"This was not a stellar 4th for LVMH with … EBIT down 15% yoy. However, we spot immoderate glimmers of anticipation with a sequential betterment successful cFX income expected from 3Q onwards and astir of the income weakness related to weaker tourism," helium said.

Cochrane pointed retired that LVMH's net earlier involvement and taxation successful the archetypal six months of the twelvemonth were marginally amended than anticipated by analysts.  

"Investors person been waiting for an accidental to revisit this banal and the league telephone highlighted a fig of factors which whitethorn promote this including a "tangible" betterment successful China, marketplace stock gains successful cardinal brands and imaginable for structural efficiencies arsenic good arsenic ongoing choky outgo management," helium added.

— Chloe Taylor

LVMH shares were astir 0.6% higher by 8:56 a.m. successful London (3:56 a.m. ET).

LVMH reported a worse-than-expected 9% diminution successful its halfway manner and leather goods conception successful the 2nd quarter. Overall, income astatine the luxury elephantine declined by 4%.

For the archetypal half, operating nett slumped by 15%, but that was inactive amended than analysts were expecting.

The luxury radical is besides making a wider propulsion to navigate U.S. tariffs — CEO Bernard Arnault confirmed that Louis Vuitton volition unfastened a caller mill successful Texas by 2027.

In an interrogation with the Wall Street Journal, Arnault said helium was lobbying EU leaders to easiness tensions with the Trump administration. Meanwhile, LVMH CFO Cecile Cabanis said the radical whitethorn look to "moderate" terms increases successful bid to mitigate the interaction of tariffs. 

— Domi Suskova

Puma shares plummeted 18% Friday aft the German sportwear marque posted worse-than-expected second-quarter income and chopped its full-year guidance, flagging the interaction of U.S. commercialized tariffs.

In a preliminary updated aft markets closed connected Thursday, the retailer said it expects full-year income to diminution by a low-double digit percent this year, compared with its anterior forecast of income maturation successful the low- to mid-single digit range.

Puma besides said it expects to station an operating nett nonaccomplishment successful 2025 — a immense plaything from the 445 cardinal euro ($523 million) to 525 cardinal euro nett it forecast anterior to assessing the interaction of tariffs.

The company's shares were down 18.4% by 8:23 a.m. London clip (3:23 a.m. ET).

Read much here.

— Karen Gilchrist

European markets person conscionable opened for the week's last session, and determination shares are broadly moving lower.

The pan-European Stoxx 600 was past seen trading 0.5% lower, with each sectors and large bourses successful antagonistic territory.

The tariffs-sensitive autos assemblage is starring losses aft manufacture elephantine Volkswagen cut its guidance, informing U.S. tariffs were eating into profits.

— Chloe Taylor

Michelin posted a 27.8% descent successful nett income successful the archetypal fractional of the year, a sharper diminution than analysts had expected. The car parts shaper said the menace of higher tariffs had led to a crisp contraction successful North and Central America. However, the institution backed its afloat twelvemonth guidance, saying it expects the marketplace for its tires to stay unchangeable compared with past year. 

— Matt Ward-Perkins

Eni has posted a 25% driblet successful 2nd 4th earnings, but inactive bushed expectations arsenic weaker lipid prices offset a robust show successful its state business. The Italian vigor radical confirmed a 5% summation successful its full-year dividend, portion revealing a lower-than-previously forecast capex for the year. 

— Michael Considine

Traton has chopped its afloat twelvemonth outlook arsenic the German motortruck shaper warns of a challenging situation arsenic the EU and U.S. grapple implicit a commercialized deal. The company, which is bulk owned by Volkswagen, besides revealed that it is cutting accumulation astatine immoderate sites successful effect to anemic demand. 

— Michael Considine

French drinks steadfast Remy Cointreau has posted 5.7% integrated income maturation for its fiscal archetypal quarter, up of expert expectations, and marking the archetypal 4th of maturation since 2023. 

The cognac-maker reduced its forecasts for the interaction of tariffs, improving its nett guidance for the afloat year.

— Matt Ward Perkins

Germany's Volkswagen on Friday lowered its full-year guidance and reported a crisp driblet successful second-quarter profit, arsenic the car elephantine navigates the disruptive interaction of U.S. tariffs.

Europe's biggest carmaker posted operating nett of 3.83 cardinal euros ($4.49 billion) for the 3 months done June, down 29% from 5.4 cardinal euros a twelvemonth ago.

Analysts had expected second-quarter nett to travel successful astatine 3.94 cardinal euros, according to a Factset-compiled consensus.

Read the afloat communicative here.

— Sam Meredith

It's acceptable to beryllium a somewhat quieter time connected the net front, but respective large names person either reported up of the opening bell, oregon volition bash truthful aboriginal successful the session.

Luxury behemoth LVMH, 1 of the region's astir invaluable companies, reported lower-than-expected quarterly income precocious connected Thursday, portion German sports apparel elephantine Puma warned this greeting that it's expecting to notch a nonaccomplishment this twelvemonth connected the backmost of a income diminution and the interaction of U.S. tariffs. Elsewhere this morning, German car elephantine Volkswagen cut its guidance, besides citing President Donald Trump's tariffs regime.

Also owed to study contiguous are British lender NatWest, French drinks elephantine Remy Cointreau and Italian vigor steadfast Eni.

— Chloe Taylor

Good greeting from London.

There's conscionable nether an hr and a fractional to spell until the last opening doorbell of the week, and determination indexes are presently looking poised to determination into antagonistic territory.

Futures tied to the German DAX, Italian FTSE MIB and French CAC 40 indexes were each past seen trading 0.2% lower. Those tied to London's FTSE 100 were past heading marginally lower.

Regional shares ended the Thursday league higher, arsenic investors focused connected U.S.-EU commercialized talks, the European Central Bank's widely anticipated involvement complaint hold and a flurry of firm earnings.

— Chloe Taylor