LVMH: Disapointing 9M sales growth (+8% organic growth)
BUY, Fair Value EUR165 (+14%)
Yesterday LVMH reported fairly poor sales growth for 9M 2013 with sales reaching EUR20.7bn (+4%) vs. the consensus estimate of EUR20.9bn. Although FX impact affected sales growth by 4%, almost in line with expectations, the dispointment came from organic growth. Indeed, 9M sales grew 8% in organic terms (vs. +9% expected by both BG and the consensus), in line with the H1 performance but meaning that the slight acceleration expected in Q3 did not happen (+8% vs +10% expected). We are maintaining our Buy recommendation.
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