Luxury stocks sparkle as LVMH sales soothe fears
LUXURY stocks sparkled as LVMH eased concerns about the health of the industry.
The French giant, one of Europe’s most valuable companies and home to brands such as Louis Vuitton, Christian Dior and Tiffany, reported a 3pc rise in first-quarter sales to £17.7bn.
The figures soothed investors worried about the outlook, and its shares rose 2.8pc in Paris.
The mood spread with Burberry up 1pc, or 11p, to 1146p in London, while on the Continent Hermes rose 2.3pc, Cartier owner Richemont increased by 3pc and Gucci parent Kering went up by 0.2pc. Also publishing figures was Adidas, which raised its profit forecast for this year to almost £600m from £426m after a strong start to 2024. Shares in Germany rose 8.6pc. London peer JD Sports was up 1.8pc, or 2.15p, to 119.05p.
Financial markets regained some composure after heavy selling on Tuesday. The FTSE 100 was up 0.4pc, or 27.63 points, to 7847.99. The FTSE 250 fell 0.02pc, or 4.40 points, to 19,340.14.
Mining stocks helped to push London’s top index higher.
Antofagasta is aiming to ramp up copper production despite output falling 11pc to 129,400 tons in the first quarter. It still expects production to increase this year, and rose 2.8pc, or 61p, to 2269p. Rio Tinto’s solid first- quarter results were driven by positive performances in its bauxite and aluminium businesses. It added 2.8pc, or 149p, to 5403p.
Anglo American joined the rally after its diamond arm posted higher sales – nearly £360m from mid-March to April 16. That was more than the £346m between February 1 and March 12. It rose 3.5pc, or 73.5p, to 2168.5p.
GSK climbed 1.3p, or 20.5p, to 1590p after fresh data showed its shingles vaccine provided protection for more than a decade in adults aged 50 and over. And trials revealed an oral antibiotic could treat gonorrhoea in adults.
Banknote printer De La Rue rose 1.8pc, or 1.4p, to 80.2p after its update on the year to March 30 contained few surprises. Food delivery firm Just Eat
Takeaway sank 5.2pc, or 62p, to 1134p after orders fell 6pc to £214.2m in the first quarter.
Eyewear firm Inspecs reported record sales of frames and returned to profit last year despite a weak December.
It made £203.3m of revenue in 2023 – up from £201m the year before and swung back into a profit of £200,000. Shares gained 7.5pc, or 3.5p, to 50.5p. Investment fund Brooks Macdonald warned clients will pull out more than they put in as they face pressures from high interest rates. It slid 2.9pc, or 52.5p, to 1775p, as net outflows hit £294m in the quarter to March 31.
Green investor Scirocco Energy wants to leave London’s Alternative Investment Market, to cut costs by at least £250,000 a year. If investors agree, shares are likely to stop trading from May 17. It fell 18.2pc, or 0.05p, to 0.23p.
Synectics, the security and surveillance business, added 4.3pc, or 8p, to 193p after it won a software contract worth £800,000.