LVMH 4% Revenue Increase

LVMH Moët Hennessy Louis Vuitton has announced a 4% increase in its revenue (equating to €21.4 billion) for the first nine months of 2014. The only sector within the group that didn’t show growth was its wines and spirits division which the luxury goods giant blames on ‘destocking’ issues in China. Hannah Charlesworth (16 Oct’14)

LVMH cited improved performance in Europe and the United States during the quarter which compensated for the slowdown observed in Asia.

Its Wines & Spirits group saw organic revenue decline by 3% in the first nine months of 2014. LVMH said this trend reflected destocking by distributors in China but it was upbeat about Hennessy’s ‘excellent momentum in the United States.’ The champagne business reportedly performed well in the third quarter, driven by strength in the American and Japanese markets.

 Fashion & Leather Goods recorded organic revenue growth of 3% for the first nine months of the year. Louis Vuitton’s creative director Nicolas Ghesquière has continued to drive the brand’s innovation and creative development spearheaded by the Maison’s launch of its new Monogram collection. 

Leather showed resilience with Fendi and Céline continuing to leather goods and footwear collections while developing their store networks. The news was also promising at Loro Piana, Givenchy, Berluti and Kenzo.

 The Perfumes & Cosmetics business group recorded organic revenue growth of 8% for the first nine months of 2014, outperforming the market. Christian Dior has flourished, particularly with  J’Adore and Dior Addict.

 Watches & Jewellery contributed organic revenue growth of 5% for the same period with Bvlgari driving  performance in the third quarter. LVMH also cited the launch of Lvcea by Bvlgari, the new watch for women,  and the success of Hublot as ‘the key highlights of the quarter.’ 

Its Selective Retailing business group showed revenue growth of 8%. DFS benefited from sustained airport activity while certain tourist destinations suffered the repercussions of financial or geopolitical changes. Sephora continued to gain market share in key regions and store revenue growth was particularly strong in the US and the Middle East. The expansion of the distribution network continues with the opening of its first stores in Indonesia. Online sales are rapidly increasing in all regions, confirming its leadership in the digital and mobile space.

 In an uncertain economic and financial environment, LVMH’s dizzying range of luxury brands look set to prosper with targeted geographic expansion, brand power and the talent of its teams.

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