LVMH hits record high, SAP raises forecast
Yahoo Finance’s Oscar Williams-Grut reports LVMH jumping to record highs following sales figures as SAP lifts its full-year guidance.
Video transcript
MYLES UDLAND: All three majors trading higher here in the US as earnings season gets underway. Also got earnings season starting abroad as well. A couple of big names trading over in Europe on the move. Yahoo Finance's Oscar Williams-Grut joins us with the latest on that story. Oscar.
OSCAR WILLIAMS-GRUT: Well, Myles, I want to first start with LVMH, the French luxury group owned by-- that owned brands such as Louis Vuitton and Moet Champagne. They reported forecast beating first quarter results after the bell last night that showed first quarter revenue up 32% year on year to $14 billion. Now, this was the first quarter of growth since the pandemic struck. And if the current trend of growth continues for the rest of the year, they'll be on track to actually exceed pre-pandemic levels of sales this year, showing just how strong that recovery is. [INAUDIBLE] boosted by strong sales in fashion and leather goods in markets on Asia and the US.
People are also beginning to celebrate as restrictions ease, it seems. Champagne sales were up 22%, pretty bullish bump there. Now this forecast beating performance sent shares up over 2% in Paris to reach a new record high. That's also helped the [INAUDIBLE] 40 Index climb about half a percent at its best point this morning to, again, reach a new all-time high. I'm also seeing some [INAUDIBLE] here in London. Burberry, the other luxury brand, is up about 1 and 1/2% today. Again, investors clearly hoping that this luxury boom is not restricted only to LVMH.
I also want to touch on SAP, the German software giant. They reported what they called a stellar start to the year. They're seeing the fastest growth in their cloud business in five years in the first quarter. The sales were up 7% to 2.15 billion euros in the fourth quarter-- in the first quarter. Now total revenue across the business was down about 3% due to a fall in demand for software support. But the company did upgrade its full year forecasts on the back of this bullish cloud business, which they expect to continue for the rest of the year. The stock is up about 4 and 1/2% in Germany. Myles.
MYLES UDLAND: All right, Yahoo Finance's Oscar Williams-Grut. Oscar, great post-lockdown haircut. Really excited for you and all those folks over there in the UK on that one. All right, we'll talk to you later on this week.
