Shares in LVMH have hit a record high after the French company reported a surge in first-quarter sales. But, as Laura Frykberg reports, the world's biggest luxury goods group has also cautioned its business envronment remains uncertain
It might not reflect what most can afford... Those who can though, appear to have their wallets wide open. The world's biggest luxury goods group LVMH has seen a surge in first quarter sales, to over 9 billion euros. That's up fifteen percent year-on-year. (SOUNDBITE) (English) CIBC, HEAD OF FX STRATEGY, JEREMY STRETCH, SAYING: "Worries the markets had, in particular in relations to an implosion in the Chinese economy this time last year, have proved to dissipate. So we've seen a much more constructive Chinese backdrop and of course that's hugely important for the luxury sector." The French company - which owns brands such as Louis Vuitton, Dior and champagne maker, Moet and Chandon - says it's had solid growth in its main markets.. Not only in China, but in Europe and the U.S too. But the trend could be short-lived. LVMH warning that uncertainty over Brexit and Trump... May see even big spenders rethink their habits. (SOUNDBITE) (English) CIBC, HEAD OF FX STRATEGY, JEREMY STRETCH, SAYING: "Only when those political risks start to crystalise, do we potential see spending patterns and spending levels start to be undermined." It's a view shared by Swiss watchmakers... Who say luxury brands could be the victim of geopolitical risks in 2017. For now at least.. Shareholders should like what they see Stocks hit a record high on Tuesday. Since the start of the year - they've been up 17 percent.