LVMH hits €18bn in Q1 while DFS revenue increases at ‘lower level’

By Charlotte Turner |

Luxury goods giant, LVMH Moët Hennessy Louis Vuitton, recorded revenue of €18 billion/US$19.5bn in the first quarter of 2022, up 29% compared to the same period in 2021, while the group reported organic revenue growth of 23%.

 

Its luxury travel retail subsidiary, DFS Group continued to be challenged by the pandemic and its impact on international travel, however, LVMH did report that revenue had increased, albeit at a ‘lower level’.

 

LVMH pointed out that DFS had developed several digital initiatives for more effective interaction with customers and that its La Samaritaine Paris Pont-Neuf store, which finally opened in June 2021 after numerous delays due to the pandemic, had been well received by local clientele.

 

The Selective Retailing division, which houses DFS Group, Starboard Cruise Services and Sephora, registered organic revenue growth of 24% in the first quarter of 2022 compared to the same period of 2021. Sephora achieved ‘excellent performance in the quarter’ with a strong rebound in the activity in its own store network, which had been partly closed at the beginning of 2021.

 

STRONG MOMENTUM IN NORTH AMERICA, FRANCE & MIDDLE EAST

LVMH said momentum was particularly strong in North America, France and the Middle East, driven notably by perfume.

 

 

LVMH said the group overall enjoyed a ‘good start to the year against a backdrop of continued disruption from the health crisis and marked by the dramatic events in Ukraine’. All business groups achieved double-digit revenue growth, except for Wines & Spirits, which continued to suffer from ‘supply constraints’.

 

The United States and Europe also achieved double-digit revenue growth; Asia continued to grow over the quarter despite the impact of a tightening of health restrictions in China in March.

DFS recently staged its 10th Masters of Wines & Spirits event in Macau.

DFS recently staged its 10th Masters of Wines & Spirits event in Macau.

‘CLOSELY MONITORING DEVELOPMENTS IN UKRAINE’

“The LVMH Group is closely monitoring developments in Ukraine and the region,” said the group in a statement. “Its first priority was to ensure the safety of its employees in Ukraine and to provide them with all the necessary financial and operational assistance.”

 

The Wines & Spirits business group recorded organic revenue growth of 2% in the first quarter of 2022 compared to the same period of 2021. The Champagne business had an excellent start to the year, with volumes rising sharply, particularly in Europe and Japan, and a firm price increase policy.

 

Maison Armand de Brignac, which has been 50% owned by LVMH since May 2021, is included for the first time in the first quarter accounts.  Hennessy cognac saw its volumes decrease compared to the first quarter of 2021 due to supply and logistical constraints at the beginning of the year.  Glenmorangie whisky and Belvedere vodka recorded strong growth.

 

The Fashion & Leather Goods business group recorded organic revenue growth of 30% in the first quarter of 2022, while Louis Vuitton ‘had an excellent start to the year, driven as always by its strong creativity’ said LVMH.

 

 

Fendi recorded solid growth, driven in particular by the success of Kim Jones’ collections. Celine achieved very strong growth thanks to the remarkable success of its ready-to-wear and leather goods lines designed by Hedi Slimane. Loro Piana, Loewe with J.W. Anderson, and Marc Jacobs all had a very good quarter.

 

PERFUME AND COSMETICS ORGANIC GROWTH +17%

In Perfumes & Cosmetics, organic revenue growth was 17% in the first quarter of 2022 compared to the same period of 2021. The business group enjoyed excellent momentum thanks to sustained growth in perfume and makeup, particularly in the United States.

 

Christian Dior achieved remarkable growth and gained market share, benefiting from the progress of its iconic fragrances Sauvage, Miss Dior and J’Adore, and its makeup. Guerlain successfully rolled out its Aqua Allegoria line and its new collection of fine perfumery l’Art et la Matière. Its Abeille Royale skincare line also contributed to the performance of the Maison. Parfums Givenchy unveiled its new eau de toilette Fraîche Irresistible. Maison Francis Kurkdjian continued to see rapid growth.

 

In the first quarter of 2022, the Watches & Jewellery business group recorded organic revenue growth of 19% compared to the same period of 2021. In jewellery, Tiffany & Co. had an excellent start to the year, still driven by strong growth in the United States. The new Knot collection was particularly successful.

 

At Bulgari, the Serpenti line, high jewellery and watch collections, including the new Octo Finissimo Ultra watch, were the main drivers of growth.  Chaumet and Fred had an excellent performance in the quarter. All of LVMH’s watchmaking Maisons continued to see strong momentum and unveiled numerous new products at the Watches & Wonders Exhibition, with watch innovations from TAG Heuer, Hublot and Zenith.

 

“In the current geopolitical context and in light of the ongoing impact of the pandemic, LVMH remains both vigilant and confident at the beginning of this year,” said LVMH in a statement.

 

“The Group will continue to pursue its strategy focused on the development of its brands, driven by strong innovation and investment as well as a constant quest for quality in its products and their distribution.”

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