Jan 19, 2009
LVMH and PPR stocks drop as Richemont downbeat
Jan 19, 2009
PARIS, Jan 19 (Reuters) - Shares in French luxury groups LVMH (LVMH.PA) and PPR (PRTP.PA) fell on Monday after Swiss peer Richemont (CFR.VX) posted weaker-than-expected third-quarter sales and said it saw no recovery for now.
Shares in LVMH, the world's biggest luxury goods group, fell as much as 3.8 percent and were 1.2 percent lower at 40.27 euros by 0919 GMT.
Shares in French retailer PPR (PRTP.PA), which owns Gucci, jeweller Boucheron and several fashion design houses, were also dragged down as much as 3.8 percent by Richemont's poor outlook and were 2.3 percent lower at 41.59 euros by 0934 GMT.
"After Tiffany, Richemont's sales confirm the decline in activity in the sector since September," Kepler Equities analyst Catherine Rolland said.
She added that the 12 percent drop in Richemont's comparable quarterly sales was worse than market expectations of a 7 percent fall.
Upscale U.S. jeweller Tiffany & Co (TIF.N) cut its profit forecast last week after holiday season sales dropped over a fifth as worsening global economic conditions led to cautious spending. Tiffany saw these conditions persisting well into 2009.
Richemont said on Monday that the current economic climate and uncertainties facing the group gave it "no cause for optimisim" and that it expected "no significant recovery" in the foreseeable future.
The short-term outlook was bad, Richemont said, adding that it was facing the toughest market conditions since the group was formed 20 years ago.
Richemont shares were 3.6 percent lower at 16.94 Swiss francs by 0947 GMT on Monday, while shares in watch maker Swatch were down 5.2 percent (UHR.VX) at 119.60 francs. (Reporting by Astrid Wendlandt; Editing by James Regan)
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