FRANCE/INTERNATIONAL. DFS Group sales grew “at a steady pace” in the first quarter, according to majority owner LVMH Moët Hennessy Louis Vuitton, which today declared a strong set of revenues for the period.
The Selective Retailing division, of which DFS is part, posted revenue growth of 13% (8% in organic terms) in the quarter to €3.5 billion. Of the DFS performance, LVMH said in a statement: “The Gallerias of Hong Kong and Macau performed particularly well. Momentum remained very strong at the Fondaco dei Tedeschi in Venice, the first European site for DFS. Its expansion in Europe will continue in 2020 with an opening in La Samaritaine in Paris.”
Overall, LVMH recorded revenue of €12.5 billion for the period, an increase of 16%. Organic growth was 11% compared to the same period in 2018. All geographic regions showed good growth, said the company.
The Wines & Spirits business group recorded 13% sales growth (9% organic) in the quarter. Champagne volumes were stable while prestige cuvées performed particularly well, notably in the USA and Japan. The business group also benefited from a firm pricing policy. Hennessy Cognac volumes increased by 11%, with the US and Chinese markets growing fast.
The Fashion & Leather Goods business group achieved the highest revenue growth by division of 20% (15% organic) in the period. Louis Vuitton turned in an “exceptional” performance, said LVMH.
The company noted: “The transformational upgrade of its distribution network continued with highly successful re-openings, including Florence, London’s Sloane Street, Monaco and Shanghai IFC. To meet growing demand and to limit stock shortages, a new leather workshop was opened in France on a site that will be able to accommodate 500 employees, and several other projects are underway.”
Christian Dior Couture performed “exceptionally” across all its product categories and regions. At Celine, the new ready-to-wear collections arrived in stores as a new concept is rolled out. Fendi, Loewe and Berluti are growing fast while Loro Piana’s vicuna and shoe collections performed well, added the group.
In Perfumes & Cosmetics, organic revenue increased 9% (reported 12%) in the period. Parfums Christian Dior had a strong quarter, benefiting from the recent launch of its new fragrance Joy. In makeup, the Rouge Dior and Diorskin lines did well. Guerlain experienced strong growth momentum, notably as a result of the sustained growth of Abeille Royale skincare and Rouge G lipstick. Parfums Givenchy performed well, while Fenty Beauty by Rihanna continued to grow rapidly.
The Watches & Jewelry business group recorded revenue growth of 9% (4% organic) in the first quarter. Bvlgari made strong progress in its own stores, driven by its lines Serpenti, Divas’Dream, Lvcea and its new Fiorever collection. Chaumet unveiled its new Liens Evidence creations in gold and diamonds.