Deshima weekly catch is a weekly publication which focus on news of interest related to international companies in technology, consumption and luxury. Deshima seeks to catch interesting company and industry news and announcements when we think they could impact investor perception and market sentiment.

Luxury earnings wrap : LVMH, MSFT, ASML, Nokia and Remy Cointreau

• Swatch also came with a very bullish outlook and upbeat comments especially on China where shoppers have been saving money for the past 3 years. Swatch is the luxury company with the highest exposure to China (around 40% of revenues).

• Microsoft quarter came above analysts’ expectations and shares rallied on the news until Nadella disclosed a cautious guidance for 2023. This echoed Nadella last week comments after he announced the suppression of 10,000 jobs (5% of the current work force). Nadella remains highly confident in the mid-term and confirmed Microsoft commitment to Artificial Intelligence a multi-billion investment in OpenAI. Azure cloud revenue growth rate is slowing a tad from 42% to 38% but remained ahead of market expectations.

• ASML is maintaining strong momentum despite macro headwinds. ASML CEO expects revenues to grow 25% in 2023.

• Luxury : LVMH announced strong numbers and raised dividend by 20%. Annual sales rose 23% in line despite macro headwinds. Management expressed confidence for 2023.  French spirits maker Remy Cointreau posted a smaller-than-expected drop in third-quarter sales, as strong shipments to China ahead of the Lunar New Year partly offset lower cognac consumption in the US. The maker of Remy Martin cognac and Cointreau liquor confirmed its full-year outlook for strong organic sales growth, albeit with further normalization of consumption trends in the fourth quarter after two "outstanding years".

• Nokia: Q4 2022 results are better than expected, with Nokia forecasting further growth in 2023. In Q4 2022, Nokia’s net sales grew 16% from 6.4 to 7.4 billion Euro. The profit for the period also increased, from 731 million euro to 929 million euro. For the full year of 2022, Nokia reported revenue of 24.911 billion euro (12% growth) and profit of 2.481 billion euro (18% growth). Growth was particularly strong in the Enterprise segment.

• Easyjet : following a very strong Q1 2023, expect traffic to grow 50% in 2023 (versus 30% previously). The airline is very well positioned to optimize its new network post covid.