Yesterday, I shared my most important key watchouts. Here is my assessment of the results presented.
Revenue: At €18.5 billion and with 1% organic quarterly growth, $MC (-2,22 %) slightly above expectations. For me, however, this is not yet a convincing signal.
China: In my opinion, this remains the biggest problem. Demand has noticeably weakened and continues to weigh on the core business.
Middle East:
$MC (-2,22 %) The company does not provide separate revenue figures for the region. Therefore, based on the Q3 figures, I cannot specifically assess how strongly geopolitical tensions are affecting local demand and luxury consumption.
U.S. & Europe: Both regions are showing resilience and are partially offsetting the weakness. This is positive, but it is no substitute for a recovery in China.
Fashion & Leather Goods: With -5% organic growth, this is the biggest disappointment for me. I would have liked to see more stability, especially at Louis Vuitton and Dior.
Margin: This remains a question mark for me. The Q3 revenue figures do not yet provide any new insights into profitability.
My conclusion: To me, the numbers do not yet confirm a turnaround. Other divisions, such as Watches & Jewelry and Selective Retailing, are performing solidly, but the weakness in the most important segment clearly persists.
I’m staying invested and will monitor developments closely. The key factor for me is whether Fashion & Leather Goods can return to a stable growth trajectory and whether China can provide the necessary momentum for that in the near future.
How do you assess the figures, and do they influence your investment decisions?
~ Not investment advice ~
