PARIS—Shares throughout Europe’s luxury-goods sector hit report highs Wednesday after LVMH Moët Hennessy Louis Vuitton SE reported a robust rebound in first-quarter gross sales, defying the pandemic’s drag on the worldwide economic system.
Buyers in China and the U.S., the place a fast vaccine rollout has led to eased restrictions, are fueling robust demand for leather-based items at Louis Vuitton, Dior and different manufacturers owned by LVMH. Gross sales at LVMH reached 14 billion euros, equal to $16.75 billion, over the primary three months of 2021, a 30% enhance in contrast with a yr earlier, stripping out the impact of forex modifications and its acquisition of U.S. jeweler Tiffany. The primary-quarter gross sales have been 8% increased than the identical interval in 2019, earlier than the pandemic.
LVMH’s standing as a bellwether of the luxurious trade helped raise shares throughout the sector to all-time highs on Wednesday. LVMH shares elevated 3.2% to €614, Gucci dad or mum Kering SA rose 2.7% to €644 and Cartier proprietor Compagnie Financière Richemont SA jumped 3% to 96.68 Swiss francs.
LVMH’s market worth rose above €300 billion this week for the primary time, solidifying its standing as Europe’s most precious firm, forward of consumer-goods large Nestle SA and pharmaceutical firm Roche Holdings AG , in addition to the continent’s oil majors and banks.
The pandemic is accelerating a shift in stock-market fortunes as the luxurious enterprise eclipses sectors that have been as soon as on the core of the European economic system. Banks are struggling to adapt to new post-financial-crisis rules. Auto makers are grappling with new rules aimed toward slashing carbon emissions. Large oil corporations are topic to the whims of turbulent power markets.