DFS buoyed by ‘strong momentum’ in Venice during first nine months of 2019

By Andrew Pentol |

T-Fondaco

Amid, the turbulent period in Hong Kong due to the anti-government protests DFS Group was boosted by strong performance at its T Fondaco Venice Galleria.

LVMH Moët Hennessy Louis Vuitton’s Selective Retailing division, which includes travel retailer DFS Group, posted organic revenue growth of +6% in the first nine months of 2019.

Revenue in the division on a reported basis rose 11% to €10.6bn ($11.7bn) from €9.5bn during the previous corresponding period the previous year. Total LVMH revenue (reported) increased 16% to €34bn in the first nine months of the year compared to €33.1bn in the first nine months of 2018.

According to the company, DFS Group continued to grow during the period, despite the slowdown in Hong Kong as a result of the anti-government protests. Growth was due to the strong momentum of the T Fondaco Venice Galleria business in Venice, which was driven by healthy demand from international travellers.

DECLINE IN BOOKINGS

Despite claims of continued growth, DFS Group’s Hong Kong business must surely have taken a significant hit off the back of a two-million strong demonstration, general strikes and riots. Long-haul bookings to Hong Kong in the period from 16 June to August 9 2019, for example also dropped 4.7% on the equivalent period in 2018 (Source: ForwardKeys).

In addition, flight bookings to Hong Kong from *Asian markets declined by 20.2% compared to the same period year-on-year. According to ForwardKeys, booking in the first 14 days of the protests fell by 9% and by 2.2% in the following fortnight (30 June – 13 July).

DFS declined to comment on the impact of the Hong Kong protests when contacted by TRBusiness.

LVMH nine-month results

LVMH Moët Hennessy Louis Vuitton’s Selective Retailing division, which includes travel retailer DFS Group, still experienced double-digit reported revenue growth despite the protests in Hong Kong and knock-on effect on bookings to Hong Kong.

LVMH said: “In a growth environment since the beginning of the year, albeit marked by an uncertain geopolitical context, LVMH will continue to be vigilant.

“The Group will pursue its strategy focused on innovation and targeted geographic expansion in the most promising markets. LVMH will rely on the power of its brands and the talent of its teams to further extend its global leadership in the luxury market in 2019.”

*Excluding China and Taiwan as a drop in bookings from those destinations in the latter stage of June may also be explained by the earlier timing of this year’s Dragon Boat Festival.

 

 

 

 

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