Why LVMH Moët Hennessy Stock Tumbled on Tuesday

Tuesday's market-moving news for global luxury-goods purveyor LVMH Moët Hennessy (OTC: LVMUY) wasn't very encouraging. After the company published a disappointing revenue update, investors assertively traded out of its stock. At the close of the day's action, it had lost almost 8% of its value. This was a far steeper drop than the 0.9% slide of the S&P 500 index.Well before the opening of the U.S. stock markets, LVMH provided third-quarter, plus six- and nine-month, top-line revenue figures broken down by product category. There were more than a few minus signs in the sections comparing those results to previous periods. In the company's third quarter, its overall top line fell by 3% year over year to just under 9.2 billion euros ($10 billion), due mainly to a 5% decline in its most critical product category: fashion and leather goods. Softening demand from consumers in China, once a reliably stable group, was a primary reason for the drop. Management also attributed it to lower growth in Japan, another key Asian market. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool