LVMH Moët Hennessy Louis Vuitton has reported total revenue amounting to €9.9bn ($10.4bn) for the first quarter of 2017 representing a rise of 15%, while organic revenue growth registered 13% – with this improvement attributed ‘to all business groups’.

 

The world’s biggest luxurygoods company also pointed to ‘positive growth in Asia, Europe and the US regions, although it also admitted to benefitting ‘from a favourable comparison base’.

 

LVMH said this was most pronounced in Europe where business was impacted by the November 2015 attacks in Paris and it added that the trend that has followed thereafter ‘cannot reasonably be extrapolated for the full year’.

 

ALL DIVISIONS IN GROWTH…

Nevertheless, all five LVMH divisions achieved at least +14% reported growth and +11% organic, marking a good start to the year for the first three months of trading (see table below).

 

On the retail side of the business, the Selective Retailing business achieved organic revenue growth of 11% in Q1 with Sephora improving its market share around the world with continued revenue growth.

 

LVMH said: “The US market is growing well, China confirmed the trend already observed at the end of 2016. Momentum at DFS in Asia improved, while the T Gallerias – opened in Cambodia and Italy in 2016 – continued their development.”

 

By contrast, the Wines & Spirits business group recorded organic revenue growth of 13% in Q1, with Champagne volumes up 7% over the period. European and US markets also continued to grow.

 

DFS IMPROVES MOMENTUM IN ASIA

LVMH added that Hennessy Cognac’s volumes grew significantly it added ‘could impact the availability of stocks for the rest of the year’. In addition the company said that momentum remains positive in the United States, while demand in China ‘confirms the trends of 2016’.

 

LVMH’s biggest division by sales revenue continues to be its Fashion & Leather Goods group, which achieved organic growth of 15% in the first quarter of 2017. The company said: “Louis Vuitton achieved a good start to the year, driven by creative momentum in all of its businesses.

 

“The recent Autumn-Winter show in the Marly courtyard at the Louvre was very well received. Fendi continues its good performance, supported by its leather and ready-to-wear lines. Céline, Kenzo, Loewe and Berluti showed progress. Givenchy announced the arrival of a new Artistic Director.

 

“Marc Jacobs continued its product lines changes and its restructuring. Rimowa, which recently joined the LVMH Group, will be consolidated as of the second quarter.”

 

GOOD PROGRESS IN FASHION

Turning to Perfumes & Cosmetics, LVMH said that organic revenue growth came in at 12% in Q1, with Parfums Christian Dior recording ‘good growth’ with the success of its make-up and the continued vitality of its perfumes J’adore and Sauvage. “At Guerlain, the launch of the new women’s fragrance Mon Guerlain, embodied by Angelina Jolie, was a highlight of the quarter,” said the company.

 

“Parfums Givenchy benefited from the success of its lipstick lines, which had rapid development in Asia. Kat Von D – launched exclusively in January at Sephora in France – is growing well. Maison Francis Kurkdjian is joining the LVMH Group.”

 

In addition, the Watches & Jewelry business group recorded organic revenue growth of 11% in Q1. In terms of brands LVMH said that Bvlgari gained market share and ‘continued to innovate with new models in its emblematic jewellery lines’.

 

The company added: “TAG Heuer successfully launched its new Connected Modular 45 watch. Several innovations presented by LVMH’s watch brands at the Baselworld watch fair were given an excellent reception, including a new edition of the Autavia by TAG Heuer, the new Octo Finissimo Automatic and Serpenti Skin watches by Bvlgari and the Defy El Primero 21 by Zenith.”