July 25, 2018 / 7:24 AM / a year ago

LVMH shares rally after strong H1 results

FILE PHOTO: A man takes a selfie in front of a Louis Vuitton store in Cannes, France, May 7, 2018. REUTERS/Stephane Mahe/File Photo

PARIS (Reuters) - LVMH (LVMH.PA) shares rose on Wednesday to hover near record highs, after the luxury goods group posted robust results for the first-half of the year.

LVMH shares were up 2.3 percent at 308 euros in early session trading - close to a record high of 313.70 euros reached in May.

Shares in rival French luxury companies also rose, with Kering (PRTP.PA) up 1.9 percent while Hermes (HRMS.PA) climbed by 0.5 percent.

LVMH reported higher interim profits late on Tuesday and said Chinese shoppers were still lapping up goods at its major brands like Louis Vuitton, easing fears of waning demand in the luxury industry’s biggest market. [nL5N1UK66F]

“We are raising our earnings per share (EPS) on LVMH by 9 percent on the back of much better than expected H1 18 Results and lower financial charges and tax rate that will sustain in estimates for the second half of 2018,” wrote JP Morgan analysts, who kept an “overweight” rating on LVMH shares.

Reporting by Sudip Kar-Gupta; Editing by Mathieu Rosemain

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