Burberry's (BRBY) results this week, which showed ongoing struggles across the wholesale, licensing and Asian operations, help highlight the attractions of the more diversified model of Paris-listed luxury retail rival LVMH (FR:MC), owner of brands such as Marc Jacobs, Céline and Louis Vuitton.
- Beat on third-quarter figures
- Strong brands
- Diversified product categories
- Improvement in Asian sales
- Currency pressure
- Weakness in France
Paris and New York listed LVMH caught our attention last month when it reported better than expected third-quarter results, where revenue for each category beat consensus broker expectations with the exception of wines and spirits (although this category still grew 7 per cent on an organic basis). Perfumes and cosmetics was the strongest performer, with sales up 8 per cent on an underlying basis and the performance of the group's most profitable division, fashion and leather goods, also impressed.