Leading luxury goods group LVMH Moët Hennessy Louis Vuitton today reported a +10% rise in revenue for the first nine months, to €33.1 billion, with a strong contribution from the Selective Retailing business group, which includes DFS Group and Starboard Cruise Services.
The retail division achieved organic revenue growth of +8% (+2% reported) in the first nine months of 2018, and +14% excluding DFS’ airport concession closures in Hong Kong (see table). LVMH said: “DFS performed well, especially in Hong Kong and Macau. The recent openings of T Galleria in Cambodia and Italy progressed well.”
Group-wide, organic revenue grew +11% compared to the same period in 2017, and +13% excluding the impact of the DFS concession closures in Hong Kong at the end of 2017. In the third quarter, revenue was rose by +10% compared to the same period in 2017, a performance which continued the trend recorded in the first half of the year and to which all business groups contributed. Organic revenue growth in Q3 was up +10%.
The Wines & Spirits business group recorded organic revenue growth of +7% in the first nine months of 2018. Champagne volumes were stable over the period. The prestige vintages performed particularly well while continuing a price increase policy. Hennessy Cognac volumes increased by +4%, with the USA and Chinese markets growing rapidly.
The Fashion & Leather Goods business group achieved organic revenue growth of +14% in the first nine months. Louis Vuitton performed strongly while Christian Dior, consolidated since the second half of 2017, enjoyed “an excellent performance”.
The Perfumes & Cosmetics business group recorded organic revenue growth of +14% in the first nine months, driven in particular by the performance of its star brands. Parfums Christian Dior continued its progress, driven by the launch of its new perfume Joy and growth of Sauvage and its other perfumes, J’adore and Miss Dior. Rouge Dior lipstick also contributed to the performance of the House. Guerlain performed very well, with the success of Abeille Royale in skincare and Rouge G in makeup. Parfums Givenchy continued its expansion, driven by makeup and its new feminine scent L’Interdit.
In the first nine months of 2018, the Watches & Jewelry business group achieved organic revenue growth of +14%. Bulgari gained market share, said LVMH, with jewellery and watch collections Serpenti, Diva, B.Zero1, Lvcea and Octo showing strong momentum, while the new Wild Pop high-end jewellery line, launched at the beginning of the summer, continued to grow. In the watchmaking sector, TAG Heuer continued to develop and Hublot, which grew strongly, opened its first stand-alone boutique in London.
(Source: The Moodie Davitt Report)