INTERNATIONAL. Leading luxury goods group LVMH Moët Hennessy Louis Vuitton has reported Q1 2017 revenues of €9.9 billion, a surge of +15% year-on-year. Organic growth was +13%, with Asia, Europe and the USA performing strongly. The company benefited from favourable comparisons with early 2016, notably in Europe, where the business was sharply affected last year after the Paris terror attacks. This comparison is not expected to persist in the remainder of the year.
The Selective Retailing division, which includes DFS, posted revenue growth of +15% in the first quarter (organic growth +11%) to €3,154 million. LVMH noted: “Momentum at DFS in Asia improved while the T Gallerias that opened in Cambodia and Italy in 2016 continued their development.”
The Wines & Spirits business group recorded revenue growth of +16% in the quarter. Champagne volumes increased by +7% while Europe and the USA continued to grow. Hennessy Cognac saw volumes increase significantly which LVMH said could impact the availability of stocks for the rest of the year.
The Fashion & Leather Goods business group achieved a +15% leap in revenues. Louis Vuitton achieved a good start to the year, while Fendi “continued its good performance”, supported by its leather and ready-to-wear lines. Céline, Kenzo, Loewe and Berluti showed progress, said LVMH. Marc Jacobs continued product line changes amid its restructuring. Rimowa, which recently joined the LVMH Group, will be consolidated from the second quarter.
In Perfumes & Cosmetics, revenue growth was +15%. Parfums Christian Dior recorded growth led by its make-up and the vitality of its perfumes J’adore and Sauvage. At Guerlain, the launch of the new women’s fragrance Mon Guerlain, was a highlight of the quarter, said LVMH. Parfums Givenchy benefited from growth in its lipstick lines, notably in Asia.
The Watches & Jewelry business group recorded revenue growth of +14% in the first quarter. Bulgari gained market share, said the company, and continued to innovate. TAG Heuer launched its new Connected Modular 45 watch.
LVMH said today: “In a particularly uncertain environment, LVMH will continue to focus its efforts on developing its brands, maintain strict control over costs and target its investments on the quality, excellence and innovation of its products and their distribution.”
