RESULTS/ANALYSIS
LVMH +15% to $10.4bn in Q1 as DFS ‘improves momentum’
In early April, LVMH suggested that conditions for DFS in Asia were gradually improving as the parent company registered impressive double-digit revenue growth.
has followed thereafter ‘cannot reasonably be extrapolated for the full year’. Nevertheless, all five LVMH
divisions achieved at least +14% reported growth and +11% organic, marking a good start to the year for the first three months of trading. On the retail side of the business,
Doug Newhouse reports. L
VMH Moët Hennessy Louis Vuitton reported total revenue amounting to €9.9bn
($10.4bn) for the first quarter of 2017 representing a rise of 15%, while organic revenue grew +13%, with this improvement attributed ‘to all business groups’. The world’s biggest luxurygoods
company also pointed to ‘positive growth in Asia, Europe and the US regions, although it also admitted to benefiting ‘from a favourable comparison base’. LVMH said this was most
pronounced in Europe where business was impacted by the November 2015 attacks in Paris and it added that the trend that
the Selective Retailing business achieved organic revenue growth of +11% in Q1 with Sephora improving its market share around the world with continued revenue growth. LVMH said: “The US market is
growing well, China confirmed the trend already observed at the end of 2016. Momentum at DFS in Asia improved, while the T Gallerias – opened in Cambodia and Italy in 2016 – continued their development.”
Wines & Spirits +13% The Wines & Spirits business division recorded organic revenue growth of +13% in Q1, with Champagne volumes up 7% over the period. European and US markets also continued to grow. LVMH added that Hennessy
Cognac’s volumes grew significantly which ‘could impact the availability of stocks for the rest of the year’. In addition the company said that momentum remains positive in the United States, while demand in China ‘confirms the trends of 2016’. LVMH’s biggest division by sales
“Momentum at DFS in Asia improved, while the T Gallerias – opened in Cambodia and Italy in 2016 – continued their development.”
LVMH 26 TRBUSINESS
revenue continues to be its Fashion & Leather Goods group, which achieved organic growth of 15% in the first quarter of 2017. The company said: “Louis Vuitton achieved a good start to the year, driven by creative momentum in all of its businesses. “The recent Autumn-Winter
show in the Marly courtyard at the Louvre was very well received. Fendi
continues its good performance, supported by its leather and ready- to-wear lines. Céline, Kenzo, Loewe and Berluti showed progress. Givenchy announced the arrival of a new Artistic Director. “Marc Jacobs continued its product
line changes and its restructuring. Rimowa, which recently joined the LVMH Group, will be consolidated as of the second quarter.” Turning to Perfumes & Cosmetics,
LVMH said that organic revenue growth came in at 12% in Q1, with Parfums Christian Dior recording ‘good growth’ with the success of its make-up and the continued vitality of its perfumes J’adore and Sauvage. “At Guerlain, the launch of the new women’s fragrance Mon Guerlain, embodied by Angelina Jolie, was a highlight of the quarter,” said the company. “Parfums Givenchy benefited
from the success of its lipstick lines, which had rapid development in Asia. Kat Von D – launched exclusively in January at Sephora in France – is growing well. Maison Francis Kurkdjian is joining the LVMH Group.” In addition, the Watches &
Jewellery business group recorded organic revenue growth of 11% in Q1. In terms of brands, LVMH said that Bulgari gained market share and ‘continued to innovate with new models in its emblematic jewellery lines’. The company added: “Several
innovations presented by LVMH’s watch brands at the Baselworld watch fair were given an excellent reception, including a new edition of the Autavia by TAG Heuer, the new Octo Finissimo Automatic and Serpenti Skin watches by Bvlgari and the Defy El Primero 21 by Zenith.” «
MAY 2017
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