LVMH has released strong third quarter results, with sales at its Selective Retailing division, which includes DFS Group, soaring 26% for the first nine months of 2023.
The financial statement comes as DFS Group reveals plans for the seven-star DFS Yalong Bay in Sanya, Hainan. The luxury retail and entertainment destination is expected to open in 2026.
Total sales for Selective Retailing hit €12,431 million for the period. The division includes Sephora and Le Bon Marché as well as DFS Group.
LVMH said DFS was experiencing recovery in line with the resumption of international travel. The retailer saw a “strong increase” in store traffic in Macao and Hong Kong as borders reopened.
In addition, DFS reopened its Waikiki Gallery in Hawaii in September.
Total sales across LVMH climbed 14% (all growth on an organic basis) over the nine months to reach €62,205 million.
Geographically, Japan saw 31% growth year-on-year over the period. The rest of Asia followed with 19% gains. Europe grew at 16%, while the United States only managed 3% gains.
LVMH said there was a “highly negative” currency impact through the third quarter.
Beyond Selective Retailing: LVMH nine-month results
All business groups reported “sustained” organic revenue growth over the first nine months of 2023, with the exception of Wines & Spirits which posted 7% declines. LVMH said this was with a high basis of comparison on 2022.
Champagne grew over the period despite “more moderate” Q3 demand. Hennessy was hit by weak demand in the US. Total sales reached
The Fashion & Leather Goods division saw 16% growth over the period, with sales reaching €30,912 million.
Louis Vuitton delivered an “excellent” performance, while Christian Dior saw “remarkable growth” and Fendi expanded its retail network.
Perfumes & Cosmetics saw sales of €6,021 over the nine months, an increase of 12%.
Fragrances saw “major growth”, with the division “carried” by Miss Dior and J’adore.
Watches & Jewellery reported 9% gains to €7,951 million. Tiffany was name-checked, while Chaumet and Fred both saw “strong growth”.
Watchmaking highlights included Hublot being appointed the Official Timekeeper of the FIFA Women’s World Cup.
Looking forward, LVMH said is is “confident” in its continued growth. The business will “maintain a strategy focused on continuously enhancing the desirability of its brands, drawing on the authenticity and quality of its products, excellence in distribution and agile organisation.”
DFS Group returned to profitability in the first half of 2023, as LVMH saw profit climb 13%.