* LVMH: current trend cannot be extrapolated to full year
* Sales up 13 pct on organic basis, beating consensus
* LVMH shares have hit record highs in 2017
(Adds detail, background)
By Sudip Kar-Gupta
PARIS, April 10 Luxury goods group LVMH
posted a surge in first quarter sales on Monday that
beat analysts' consensus forecast, although the French company
cautioned its business environment remained uncertain.
Sales rose to 9.88 billion euros ($10.5 billion), up 15
percent year-on-year. According to a consensus compiled for
Reuters by Inquiry Financial, analysts' mean forecast for first
quarter sales was 9.55 billion euros.
On a like-for-like or organic basis, sales were up by 13
percent at the world's biggest luxury goods group, also beating
the consensus forecast for an organic sales increase of 9
LVMH, whose shares have hit a record high this year, said it
had witnessed solid growth across its main markets in Asia,
Europe and the United States, but added "the trend currently
observed cannot reasonably be extrapolated for the full year".
In January, LVMH reported record revenues and profits for
2016 but sounded a note of caution for 2017, given geopolitical
uncertainties ranging from the impact of Britain's decision to
leave the European Union to the new U.S. administration of
President Donald Trump.
"In a particularly uncertain environment, LVMH will continue
to focus its efforts on developing its brands, maintain strict
control over costs and target its investments on the quality,
excellence and innovation of its products and their
distribution," LVMH added in a statement on Monday.
LVMH's outlook echoed a similarly circumspect view issued
last month by Swiss watchmakers, whose executives told Reuters
at a key industry fair in Basel that they expected their market
to remain challenging this year.
LVMH shares closed down 0.9 percent at 207.45 euros, close
to a record high of 209.30 euros reached earlier on Monday.
The stock is up by around 14 percent so far in 2017, beating
a rise of around 5 percent on France's benchmark CAC-40 index
and slightly outperforming a 13 percent advance on the
STOXX Europe 600 Personal & Household Goods index.
($1 = 0.9432 euros)
(Reporting by Sudip Kar-Gupta; Editing by Sarah White and Mark