Wines and spirits hiccup for LVMH luxury business
It has been a bubbly nine months for the LVMH luxury business – with the exception of its wines and spirits division, which was hampered by supply constraints.
Revenue grew by 14 per cent for the period to reach €30.1 billion (US$35.4 billion).
With organic revenue growth of 12 per cent, the third quarter continues the trend for the year, says the group. The revenue increase was despite a negative currency impact of 5 per cent and a positive structural impact of 7 per cent, reflecting the integration of Christian Dior Couture.
All business groups recorded double-digit organic growth, with the exception of wines and spirits where growth was 8 per cent. Champagne volumes were up 4 per cent, with particularly strong demand in Europe and Japan. Hennessy cognac had a volume increase of 9 per cent despite a third-quarter decline related to limited supply.
LVMH’s selective retailing business group had organic revenue growth of 12 per cent. Online sales grew at a steady pace, and DFS had sustained growth, particularly in Hong Kong and Macau. The T Galleria store in Cambodia has also developed well, says the group.
Organic growth of 14 per cent was recorded by the fashion and leather goods business group. It attributes this to innovation, such as the launch of Louis Vuitton’s first smartwatch.
“The qualitative development of the distribution network continues, as illustrated by the opening of the Maison Louis Vuitton Vendome in Paris, which brings together under one roof all the savoir-faire of the maison,” says the group.
Highlights during the period included Fendi opening stores in the US and Rimowa being consolidated. Donna Karan was sold at the end of last year.
There was also 14 per organic growth in perfumes and cosmetics. Perfumes benefitted from the launch of the eau de parfum Miss Dior. Guerlain rolled out Mon Guerlain fragrance internationally, and Fenty Beauty by Rihanna had an “exceptional” start.
Watches and jewellery had 13 per cent organic revenue growth, with Bulgari achieving “a remarkable performance” with the rapid growth of its signature jewellery collections Serpenti, Diva and B.Zero1.