LVMH's weak Q1 cognac performance in U.S., China reads negatively for European spirits-JPM

** J.P.Morgan flags the worse-than-expected Q1 performance of LVMH's MC cognacs and spirits, with a 16% y/y sales decline, reads across negatively to spirits peers Remy Cointreau RCO and Pernod Ricard RI

** JPM notes Hennessy Cognac performance was impacted by what LVMH calls a "cautious attitude among retailers" in an uncertain U.S. climate, and soft local demand in China during the Chinese New Year

** LVMH's management also points to unexpected further destocking in the U.S. in Q1, with "about flat" consumption - the first time in 18 months that LVMH has seen a stabilization, JPM adds

** The negative trade sentiment from U.S. retailers on Hennessy makes a cautious read for Remy Cointreau, for whom cognac represents more than 70% of sales, JPM says

** "Remy's premium price positioning is a disadvantage and it is still seeing volumes losses as per recent market data" - JPM

** On top of that, the normalization of the Chinese spirits market continues with no positive signs of upturn, JPM says

** For Pernod Ricard, JPM expects soft U.S. performance in its Q3, and China to remain weak