The bank posted pretax profit in the six months to June of $21.56 billion, down from $21.66 billion in the same period of last year.

HSBC’s earnings results

The first-half figure of pretax profit came in well above the $20.5 billion average of broker estimates compiled by HSBC, as per reports.

“We are growing and investing in our international retail and wealth business to sit alongside this, which is helping to diversify revenue,” HSBC’s outgoing CEO Noel Quinn said Wednesday.

“Each of these strengths contributed to a good revenue performance in the first half of 2024, supported by higher interest rates.”

The new return target and earnings that beat market expectations should give investors confidence, Jefferies analyst Joe Dickerson added.

HSBC’s revenue

HSBC’s revenue was up 1.1% year-on-year to $37.3 billion, in a performance HSBC attributed to the “impact of higher consumer activity in our Wealth products in Wealth and Personal Banking (‘WPB’), and in Equities and Securities Financing in Global Banking and Markets (‘GBM’).”

The lender’s wealth revenue picked up by 12% to $4.3 billion in the first six months to June, with noted growth in investment distribution, asset management and life insurance.

The bank outlined its priorities of diversifying its revenues and maintaining a firm foothold in what it described as its “critical” home markets of Hong Kong and the U.K. — it noted 345,000 new-to-bank customers opening accounts in the former region in the first half of the year, with international customers up 8% to 2.7 million in Britain over the same period.

HSBC approved dividend

The bank also approved a second interim dividend of $0.10 per share and announced a share buyback of up to $3 billion, which it said it expects to complete within three months.

“That takes our total distribution to shareholders in 18 months to over $34 billion,” HSBC’s Quinn told CNBC Wednesday. “And I think the standout performance is, I think, our ability to continue to grow revenue from alternative sources other than interest income.”

HSBC’s new goals

Europe’s biggest bank also set out a new goal for its return on average tangible equity – a key performance target – to be in the mid-teens in 2025, matching its estimate for 2024.

As HSBC is due to welcome new CEO Georges Elhedery in September following the retirement of Noel Quinn, said it had succeeded in reducing its sensitivity to rate cuts through an insurance strategy known as a structural hedge.

HSBC return on equity

HSBC’s CET1 capital ratio picked up to 15.0%, up by 0.2 percentage points compared with the Q4 of last year and above the lender’s guidance of its medium-term target range of 14% to 14.5% for the metric.

The bank also declared a return on average tangible equity excluding notable items of 17.0% over January-June, down from 18.5% in the same period of last year. HSBC provided new guidance of “mid-teens return on average tangible equity in 2025,” in line with its 2024 outlook.

“The strong performance of the business gives us the confidence to say that we’ll be mid-teens return in 2025 as well,” said Quinn. Addressing the broader outlook, he touched on the bank’s performance in the U.K., saying, “I think there are some encouraging signs in there for future economic growth, and there’s certainly a strong resilient economy at the moment.”

Stock update

HSBC share price which is London-listed picked up 3.12% at 08:42 a.m. London time, just after local markets opened, while Hong Kong-listed HSBC share price were up roughly 4.4%. This is as investors cheered its stable first-half profit growth, gains in wealth management income and narrowing losses in Chinese real estate.

The post HSBC Reports Robust H1 Profit, Launches $3B Share Buyback Program appeared first on Industry Leaders Magazine.

Starbucks’ Siren System plan

Starbucks this year rolled out its Siren System plan, which included updating its equipment to increase the pace of service at its stores, as the company turns to discounts and promotions to appeal to cost-conscious consumers.

The system was deployed across its U.S. company operated stores in the reported quarter, and Starbucks plans to have the equipment, such as a refit to its espresso machines, in less than 10% of its global stores by the end of year.

“We are focused on what we can control in a consumer environment that can be best described as complex,” CEO Laxman Narasimhan said on a post-earnings call.

Starbucks’ revenue

Starbucks’ operating margin fell 70 basis points in the third quarter, a sequentially smaller drop. Profit of 93 cents per share was in line with LSEG estimates.

“Quite possibly, investors are viewing this as not as bad as was feared potentially. We’re kind of impressed that they were able to open 526 new stores in the quarter,” said Greg Halter, director of research at Carnegie Investment Counsel.

Starbucks’ coming up with deals

U.S. fast-food chains have rolled out limited deals and offers to bring back to stores thrifty consumers increasingly looking to cook at home in the face of sticky inflation.

Known for its pricey lattes, Starbucks spent the summer offering uncharacteristic deals including bundled menus such as a coffee or tea paired with a butter croissant for $5 in June, as well as 50% off deals on Fridays in May.

Starbucks weak in China

In China, the company grappled with weak consumer spending and stiff competition from local coffee chains such as Luckin’ Coffee in a weak macroeconomic environment.

Still, same-store sales tumbled 14% in China, following an 11% drop in the second quarter. Sales in international markets also missed expectations, echoing results from McDonald’s and Domino’s.

Starbucks global sales down

Starbucks continued to face weakness in the Middle East, South Asia and some parts of Europe as a result of boycotts related to the war in Gaza.

The Seattle-based company reaffirmed its global and U.S. comparable sales in range of a low single-digit decline to flat, and annual profit in the range of flat to low-single digits.

The coffee chain also confirmed on a post-earnings call that Elliott Investment Management was a shareholder and talks with the activist investor had been “constructive”.

Stock update

Starbucks share price was down 22% this year. Though Starbucks shares were up 5% in extended trading after executives reaffirmed its annual forecasts. Starbucks’s share price closed at $75.93. It is up 3.86% in the last 3 months and down -25.24% in the last 12 months.

The post Starbucks Q3 Earnings Meet Expectations Despite Global Sales Decline appeared first on Industry Leaders Magazine.

Samsung flags strong AI demand as profits soar on higher chip prices. “In the second half of 2024, AI servers are expected to take up a larger portion of the (memory) market as major cloud service providers and enterprises expand their AI investments,” Samsung said in a statement.

Samsung’s earnings result

Here are Samsung’s second-quarter results versus analysts’ average estimates according to LSEG.

Samsung revenue: 74.07 trillion Korean won (about $53.45 billion) vs. 73.74 trillion Korean won

Samsung operating profit: 10.44 trillion Korean won vs 9.53 trillion Korean won

The Samsung’s revenue for the quarter ended June jumped 23.42% from a year earlier, while operating profit soared 1,458.2%.

Samsung’s server AI demand

Rebounding semiconductor prices stoked by the AI boom lifted June quarter earnings for the world’s biggest maker of memory chips, smartphones and TVs from a low base a year ago.

The South Korean giant said robust demand for high-bandwidth as well as conventional memory, such as regular dynamic random access memory, from customers expanding AI investments contributed to the strong performance.

For the second half, Samsung said it expects the demand from server AI to stay strong across server products including HBM, server DRAM and SSD. SDD, or solid-state drive, refers to a semiconductor-based storage device.

Samsung expands sales

The firm added that expanding capacity to meet demand for HBM and server DRAM could further constrain supply of conventional memory chips.

During its earnings call, the firm said it plans to address the AI demand by expanding sales of HBM3E the latest AI memory product through capacity expansion in the second half.

It will also expand sales of SSDs which are currently in high demand for AI servers as well.

Memory chip rebound helped Samsung

HBM memory chips are crucial for AI chips, which have seen a huge demand enabled by the AI boom. This has largely benefited firms like Samsung Electronics and SK Hynix, tow of the top memory chipmakers in the world.

Business for Samsung rebounded as memory chip prices recovered on AI optimism last year. The South Korean electronics giant saw record losses in 2023 as the industry reeled from a post-Covid slump in demand for memory chips and electronics.

Samsung reportedly has cleared the tests for the use of its HBM3 chips in Nvidia processors for the Chinese market. SK Hynix has so far led the HBM memory chip market, having been the sole supplier of HBM3 chips to Nvidia.

Decline in smartphone sales

Samsung smartphone sales declined in the Q2 largely because of the “base effect of launches of new models” in the Q1. However, the Galaxy S24 series continued to see strong demand, Samsung said.

Profitability in the smartphone business also dropped as prices of key components rose.

The firm plans to continue pushing its premium Galaxy AI products. In its latest move, Samsung announced last week global availability for its newest Galaxy devices including Galaxy Z Fold6, Z Flip6, Watch Ultra and Ring.

Samsung stock update

The firm also said it would pay out a dividend of 361 won per common and preferred share for the Q2.

“According to our current dividend policy, the total amount distributed per quarter amounts to approximately 2.45 trillion won, which will be paid near the end of August.”

Samsung’s share price rose 0.9% in morning trade versus a 0.5% rise in the benchmark index.

The post Samsung Reports 15-Fold Rise in Q2 Profits as AI Chip Demand Soars appeared first on Industry Leaders Magazine.

After a challenging Q2, McDonald’s executives told restaurant operators and analysts they are refocusing on how to recapture consumers with deals as they pushed for an extension of the its $5 value meal platform.

McDonald’s quarterly sales drop

Persistent inflation has forced lower-income consumers to shift to more affordable food options at home. That has led fast food chains such as McDonald’s, Burger King, Wendy’s and Taco Bell to lean on value meals to spark customer traffic.

McDonald’s share price, which are down 15% this year, rose nearly 4% after company executives said the $5 meal deal launched late in June sold above expectations. They said the company was working with franchisees in a bid to extend it beyond August.

McDonald’s global results

McDonald’s, which stuck to its 2024 forecast for operating margin of mid-to-high 40% range, said it would be more selective with price increases to protect profitability.

“Even though things (traffic) are soft now, they should be getting better in the back half of the year … with better value on the menu,” said Brian Mulberry, client portfolio manager at Zacks Investment Management.

Global comparable sales fell 1% in the Q2, compared with expectations of a 0.5% increase. Overall revenue rose 1%.

CEO Chris Kempczinski said there is a lot more deal-thinking from consumers who have become “very discriminating”. “Consumer sentiment in most of our major markets remains low,” he said.

Fewer people eating out

McDonald’s results dovetail with comments last week from Coca-Cola CEO James Quincey, who said there had been “some softness in away-from-home channels” in North America, an indication of fewer people eating out.

“The biggest hit for McDonald’s is the low-income consumer has really cut back on visits and that is more than offsetting the typical trade down McD normally sees in tougher economic times,” said Edward Jones analyst Brian Yarbrough.

U.S. comparable sales fell 0.7% in the quarter ended June 30, compared with a 10.3% jump a year ago. Sales in international markets, which made up nearly half its 2023 revenue, dropped 1.1%, driven by weakness in France.

McDonald’s sales drop globally

A slower-than-expected recovery in China and the Middle East conflict hurt the performance of McDonald’s business segment where restaurants are operated by its local partners, as sales declined 1.3% compared with a 14% jump a year earlier.

Effect of boycotts

Companies like McDonald’s and Starbucks have also suffered from consumer boycotts linked to the Gaza war, which hit their sales in the Middle East markets.

McDonald’s, however, stuck to its capital expenditure budget of up to $2.7 billion, with more than half of that earmarked for new restaurants in the U.S. and international markets.

It earned $2.97 per share on an adjusted basis in the second quarter, missing expectations of $3.07.

The post McDonald’s Reports Sales Decline Amid Consumer Shift in 3 Years appeared first on Industry Leaders Magazine.

Apple said on Monday that the artificial intelligence models underpinning Apple Intelligence, its AI system, were pretrained on processors designed by Google. This is a sign that Big Tech companies are looking for alternatives to Nvidia when it comes to the training of cutting-edge AI.

Apple AI models trained on Google

Apple’s choice of Google’s homegrown Tensor Processing Unit (TPU) for training was detailed in a technical paper just published by the company. Separately, Apple released a preview version of Apple Intelligence for some devices on Monday.

Apple AI training without Nvidia

Nvidia’s pricey graphics processing units (GPUs) dominate the market for high-end AI training chips, and have been in such high demand over the past couple years that they’ve been difficult to procure in the required quantities. OpenAI, Microsoft, and Anthropic are all using Nvidia’s GPUs for their models, while other tech companies, including Google, Meta, Oracle and Tesla are snapping them up to build out their AI systems and offerings.

Apple’s decision to rely on Google’s cloud infrastructure is notable because Nvidia produces the most sought-after AI processors. Including the chips made by Google, Amazon.com and other cloud computing companies, Nvidia commands roughly 80% of the market.

Companies overinvesting in AI infrastructure

Meta CEO Mark Zuckerberg and Alphabet CEO Sundar Pichai both made comments last week suggesting that their companies and others in the industry may be overinvesting in AI infrastructure, but acknowledged the business risk of doing otherwise was too high.

“The downside of being behind is that you’re out of position for like the most important technology for the next 10 to 15 years,” Zuckerberg said on a podcast with Bloomberg’s Emily Chang.

Apple using Google chips for AI

Apple doesn’t name Google or Nvidia in its 47-page paper, but did note its Apple Foundation Model (AFM) and AFM server are trained on “Cloud TPU clusters.” That means Apple rented servers from a cloud provider to perform the calculations.

“This system allows us to train the AFM models efficiently and scalably, including AFM-on-device, AFM-server, and larger models,” Apple said in the paper.

Apple said that to train its AI models, it used two flavors of Google’s tensor processing unit (TPU) that are organized in large clusters of chips. To build the AI model that will operate on iPhones and other devices, Apple used 2,048 of the TPUv5p chips. For its server AI model, Apple deployed 8,192 TPUv4 processors

Representatives for Apple and Google didn’t respond to requests for comment.

Apple Intelligence system

Apple was later to reveal its AI plans than many of its peers, which loudly embraced generative AI soon after OpenAI’s launch of ChatGPT in late 2022. On Monday, Apple introduced Apple Intelligence. The system includes several new features, such as a refreshed look for Siri, better natural language processing and AI-generated summaries in text fields.

Over the next year, Apple plans to roll out functions based on generative AI, including image generation, emoji generation and a powered-up Siri that can access the user’s personal information and take actions inside of apps.

This is the second technical paper about Apple’s AI system, after a more general version was published in June. Apple said at the time that it was using TPUs as it developed its AI models.

Apple is scheduled to report quarterly results after the close of trading on Thursday.

Stock update

Apple share price was up at $218.24 but at closing it fell to $217.19. Nvidia share price closed at $110.77 down 0.73%. Google share price was up at $171.13 today but closed lower at $169.73.

The post Apple Chooses Google Chips for AI Training, Sidestepping Nvidia appeared first on Industry Leaders Magazine.

The hearing getting adjourned for liquidation gave a breather to the embattled Chinese developer which is trying to finalize an offshore debt revamp plan.

Country Garden liquidation hearing for debt

The hearing on Monday, July 29 is the latest in County Garden’s legal wrangling with creditors. This is after Ever Credit, a unit of laminates maker Kingboard Holdings, filed a winding-up petition against it in February.

Ever Credit Limited, a unit of Hong Kong-listed Kingboard Holdings filed the liquidation petition against Country Garden in February for non-payment of a $205 million loan.

The developer defaulted on its $11 billion worth of offshore bonds last year.

The main purpose of a wind-up petition is to speed up the debt-restructuring process by forcing the defaulted company to come up with a repayment plan through negotiations with creditors. The builder said last month that work on its restructuring was continuing and that it had regularly addressed due diligence requests from bank creditors and a key group of bondholders.

Country Garden’s declining sales

Country Garden, once China’s largest developer by sales, continues to struggle amid a prolonged property crisis in the world’s second-largest economy. In June, Country Garden’s contracted sales plunged 73% to 4.3 billion yuan (S$797 million) from a year earlier, according to an exchange filing.

Country Garden grace period

After defaulting on U.S. dollar bonds last year, the distressed real estate giant in May made interest payments for two bonds within a grace period after missing an initial deadline earlier. The move averted a potential test of a Chinese programme to backstop distressed developers’ debt.

Country Garden has become one of the biggest casualties of China’s real estate crisis, with 1.4 trillion yuan of total liabilities, as per report. The Foshan-based developer suspended trade in its shares in the Hong Kong market in March after postponing the publication of its annual report.

Country Garden debt restructuring

A lawyer for Country Garden told the court on Monday that the developer expected to publish offshore debt restructuring term sheets in September, and that it planned to seek approval from the court on that arrangement early next year. 

The hearing into Country Garden’s liquidation petition comes against the backdrop of Chinese authorities stepping up efforts to revive the property sector after it slipped into an unprecedented debt crisis in mid-2021.

Real estate defaulters

Over the last couple of years, a growing list of developers have defaulted on their offshore debt repayment obligations. Many are facing liquidation lawsuits filed by creditors, with the latest being state-backed Sino-Ocean Group. A handful, including sector giant China Evergrande Group, have been ordered to be liquidated so far.

The post Embattled Country Garden Secures Breather as Liquidation Hearing Adjourned appeared first on Industry Leaders Magazine.

This auto industry alliance is a strategic move that could significantly impact the future of automotive technology. Mitsubishi Motors stock rise was about 6.4% in late morning trade, while share price of Nissan rose 2.4% and Honda’s gained 2.7%.

Mitsubishi, Nissan, and Honda alliance

The automotive industry is undergoing a transformative shift towards electric vehicles (EVs) and advanced software platforms. Standardizing in-vehicle software is a critical step for automakers. By joining forces, Mitsubishi, Nissan, and Honda aim to streamline their efforts in developing cutting-edge software that controls various functions of modern cars.

Spokespeople for all three companies declined to comment.

Nissan and Honda said in March they were considering a strategic partnership to collaborate on producing electric vehicle components and artificial intelligence in automotive software platforms.

Auto industry alliance gives competitive edge

As per reports the three Japanese automakers are considering this collaboration to enhance their competitive edge. The reports suggest that the alliance will focus on standardizng software used in EVs and autonomous vehicles, potentially leading to cost reductions and improved efficiency.

Collaborations for AI and EV

Earlier this year, Nissan and Honda announced that they were exploring a strategic partnership to collaborate on producing EV components and developing artificial intelligence (AI) for automotive software platforms. This announcement set the stage for potential future collaborations, with Mitsubishi now reportedly joining the discussions.

A spokesperson for each of the three companies declined to comment on the ongoing talks. However, the prospect of such an alliance aligns with the broader industry trend of automakers teaming up to share technology and development costs.

Standardizing in-vehicle software future for automakers

Standardizing in-vehicle software is crucial as automakers transition to EVs and autonomous driving technologies. Currently, each manufacturer develops its own proprietary software, leading to increased costs and potential compatibility issues. Now Mitsubishi, Nissan, and Honda could leverage their collective expertise to create a unified platform that benefits all parties involved.

This collaboration could lead to more seamless integration of new technologies, faster development cycles, and reduced costs. For consumers, it means potentially more reliable and advanced vehicles with improved user experiences.

Investors upbeat for auto industry alliance

The rise in stock of Mitsubishi, Nissan, and Honda following the reports indicates strong investor confidence in the potential benefits of the alliance. Investors are likely optimistic about the cost-saving opportunities and the technological advancements that could arise from such a partnership.

For Mitsubishi, collaborating with Nissan and Honda could provide a significant boost in its efforts to remain competitive in the rapidly evolving automotive market. Mitsubishi’s stock rise reflects market sentiment that sees this potential alliance as a positive step towards future growth and innovation.

Stock update

Mitsubishi Motors’ share price rose by 6.4% in late morning trade, reflecting investor optimism. Nissan’s shares increased by 2.4%, while Honda’s shares gained 2.7%, indicating a broader market belief in the benefits of such an alliance.

The post Mitsubishi, Nissan, and Honda Eye Software Standardization Alliance, Stocks Rise appeared first on Industry Leaders Magazine.

This seat changes happened after 50 years as Southwest Airlines faces investor pressure to improve earnings result and shore up its share price.

Southwest revenue falls

Southwest said unit revenue for the Q2 could fall as much as 2% over last year and nonfuel costs could rise as much as 13%, with higher expenses weighing on the airline through the end of 2024.

“There is simply more capacity, on the domestic side, than demand right now,” Southwest CEO Bob Jordan said during the company’s earnings call. Jordan said capacity was up 6% in the second quarter and that the airline is working down capacity “aggressively” to moderate it to 2% in the third quarter.

Southwest Q2 results

Here is Southwest Q2 earnings compared with Wall Street expectations, according to consensus estimates from LSEG:

Southwest earnings per share: 58 cents adjusted vs. an expected 51 cents

Southwest revenue: $7.35 billion vs. $7.32 billion expected.

The Dallas-based airline said its second-quarter revenue rose 4.5% from last year to $7.35 billion, a record, but its profit dropped more than 46% to $367 million, or 58 cents a share. Revenue per available seat mile, a gauge of airline pricing power, fell 3.8%, roughly in line with the carrier’s reduced forecast last month.

Southwest reported adjusted per-share earnings of 58 cents a share, above analysts’ expectations.

“There are areas we need to improve, which we are owning and addressing as a management team,” CFO Tammy Romo said during the earnings call. “We are actively reviewing our return of capital policies and ultimately, our goal is to restore shareholder returns to historic levels.”

Southwest’s compensation from Boeing

On Thursday, Southwest said that it is in talks for compensation from Boeing as its sole supplier of airplanes struggles to deliver aircraft on time because of its safety and manufacturing crises. Southwest said it continues to expect just 20 deliveries from Boeing this year — less than half of what it had previously forecast.

The airline is in the middle of an overhaul as pressure mounts from investors to do more to increase revenue. Elliott Investment Management disclosed a nearly $2 billion stake in the carrier last month and called for a leadership change.

Southwest making seat changes

Earlier Thursday, Southwest announced that it will do away with its open seating plan and offer some seats on its Boeing aircraft that have extra legroom and add overnight flights, the biggest changes to its business model in its more than five decades of flying. The changes, which start next year, would make Southwest more like its network carrier rivals.

“We are taking urgent and deliberate steps to mitigate near-term revenue challenges and implement longer-term transformational initiatives that are designed to drive meaningful top and bottom-line growth,” Jordan said in the release.

Jordan added that the company sold “too many seats early for the peak summer travel period” at lower costs, leaving the company with fewer seats to sell later in the booking curve in higher booking classes. He said that the company hired third-party experts and is adding more senior leadership over the area to understand what’s going on.

“We have a strong action plan, and that action plan is being put into place right now,” Jordan said.

Southwest safety review

On Tuesday, the Federal Aviation Administration announced that it’s launching a safety review of Southwest. Jordan said during the earnings call that he spoke to FAA Administrator Michael Whitaker earlier this week to reinforce both Southwest’s and his personal commitment to safety.

Southwest’s stock update

Southwest’s shares have lost about 30% of their value over the past two years, during a time when the broad-market S&P 500 has gained about 37%. Shares rose 6% at $28.31 in afternoon trade.

The post Southwest Airlines Ends Open Seating as Earnings Fall Short appeared first on Industry Leaders Magazine.

LVMH, the world’s largest luxury goods company, posted a modest 1% rise in organic sales in the Q2 Falling short of analyst expectations and fueling concerns over decelerating growth in the sector.

LVMH Q2 sales and earnings report

Sales at the world’s biggest luxury group and owner of labels Louis Vuitton, Tiffany & Co. and Hennessy, grew to 20.98 billion euros ($22.8 billion), a 1% rise on an organic basis, which strips out currency effects and acquisitions.

LVMH Q2 performance compares to a 3% rise year-on-year in the Q1, and double-digit growth in 2023 when consumers in key market China splurged on luxury goods as they emerged from pandemic lockdowns.

Drop in luxury sector sales

The report from sector bellwether LVMH, which is Europe’s second-largest listed company, worth around 340 billion euros, follows profit warnings from smaller labels Burberry and Hugo Boss Last week.

Gucci-owner Kering reports first half results on Wednesday and Hermes reports on Thursday.

Though LVMH sales undershot expectations for revenues of 21.6 billion euros, according to an LSEG poll based on six analysts, it was seen as largely priced in.

“All in all, this shouldn’t be an insurmountable problem, given the minimal size of the miss and the significant pullback the LVMH share price has suffered since the initial post 4Q23 reporting euphoria,” said Luca Solca, analyst at Bernstein.

LVMH Q2 sales fall in Asia

LVMH offered “no nasty surprises”, said Piral Dadhania, RBC analyst.

Its sales in Asia, excluding the Japanese market, fell by 14% in the Q2, worsening from a 6% drop in the first quarter.

Sales in Japan, where tourists are taking advantage of the weak yen, continued to grow.

LVMH CFO Jean-Jacques Guiony said that it was difficult to provide an outlook on the Chinese market, but added that “the Chinese customer is holding up quite well”.

“We still see a lot of China travellers, particularly into Japan, which says something about the appetite of mainlanders for our brands, which shows no sign of fading away,” Guiony told analysts on a call.

Business with U.S. and European customers is “slightly better”, he added.

The surge in sales in Japan is, however, exerting significant pressure on margins, he added, with lower costs and prices compared to China.

LVMH operational profit

Operating profit for the first half was 10.65 billion euros, with an operating margin of 25.6%, down from 27.4% a year ago.

That compared to expectations for 11.11 billion euros and a 26.2% margin, according to consensus provider Visible Alpha.

The group’s fashion and leather goods division, which includes the Louis Vuitton and Christian Dior brands and accounts for nearly half of group sales and the bulk of operating profit, grew 1%, slowing slightly from the previous quarter’s 2% rise.

LVMH share price

LVMH share price have been volatile since the luxury slowdown emerged, and are down about 20% over the past year, amid worries that middle-class shoppers in China are pulling back on purchases due to a property slump and job insecurity.

The post LVMH Sales Growth Dampened by Sluggish Chinese Market in Q2 appeared first on Industry Leaders Magazine.