DFS Group in “sustained growth” drive as key Asian markets rebound

INTERNATIONAL. Buoyed by a strong retail performance, LVMH Moët Hennessy Louis Vuitton, today reported a +14% increase in revenue year-on-year for the first nine months, with the total reaching €30.1 billion. Organic revenue grew +12% compared to the same period in 2016.

The Selective Retailing business group was a key contributor, recording organic revenue growth of +12% for the first nine months. LVMH said: “DFS is experiencing sustained growth, particularly in Hong Kong and Macau. The T Galleria stores in Cambodia and Venice have developed well.”

Apart from retail, all other business groups recorded double-digit organic growth, with the exception of Wines and Spirits, whose progress was limited by supply constraints.

DFS Group maintained its recent strong showing in Macau; the recently upgraded T Galleria by DFS City of Dreams is pictured

The Wines & Spirits business group recorded organic revenue growth of +8% in the first nine months. Champagne volumes were up +4%, with particularly strong demand in Europe and Japan. Hennessy Cognac has been performing well since the beginning of the year, noted LVMH. The volume increase was +9% for the first nine months of 2017, despite a third quarter decline related to supply constraints.

The Fashion & Leather Goods business group recorded organic revenue growth of +14% for the period. Louis Vuitton introduced its first smart watch and continued to be s key driver. Christian Dior Couture, whose business is consolidated for the first time in the third quarter, achieved “an excellent performance” said LVMH.

In related news, Fendi is stepping up its development in the USA with the opening of several new stores. Loro Piana, Céline and Loewe are making good progress, added the group, while Rimowa has been consolidated since January 2017. Donna Karan was sold at the end of 2016.

The Perfumes & Cosmetics business group recorded organic revenue growth of +14% for the first nine months of 2017. Parfums Christian Dior continued its strong performance, noted LVMH. Perfumes benefited from the strength of J’adoreSauvage and from the launch of the eau de parfum Miss Dior. In makeup, the range of Rouge Dior lipstick grew rapidly, the company said. Guerlain rolled out its new Mon Guerlain fragrance internationally. Parfums Givenchy continued its strong expansion, driven by makeup. Fenty Beauty by Rihanna, distributed exclusively at Sephora, experienced “an exceptional start”.

The Watches & Jewelry business group recorded organic revenue growth of +13% for the first nine months. Bulgari achieved “a remarkable performance” thanks in particular to the rapid growth of its signature collections Serpenti, Diva and B.Zero1. The launch of the new Festa high-end jewellery line was one of the highlights of the last quarter. Chaumet and Fred also contributed to the overall positive performance. In watches, TAG Heuer and Hublot continue to grow, added LVMH.

The group reported organic revenue growth of +12% in the third quarter, continuing the trend recorded in the first part of the year. Revenue increased by +14% in Q3, including a negative currency impact of -5% and a positive structural impact of +7%, reflecting notably the integration of Christian Dior Couture.

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