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LVMH announces financial results for the third quarter

LVMH

LVMH Moët Hennessy Louis Vuitton, the luxury products group, recorded revenue of US$51 billion in the first nine months of 2021, up 46 percent compared to 2020, with Asia accounting for 36 percent of total revenue.

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Organic revenue growth over the period was 40 percent compared to 2020. Compared to 2019, organic growth over the first nine months of 2021 was 11 percent, with trends in the third quarter (+ 11 percent) comparable to those of the first half, both by activity and by region.

The Fashion & Leather Goods business group, which reached record levels over the period, recorded organic growth of 38 percent compared to the third quarter of 2019, identical to that recorded over the first six months of the year. The United States and Asia continued to see double-digit growth.

The Wines & Spirits business group recorded organic revenue growth of 30 percent in the first nine months of 2021 compared to the same period of 2020 and 10 percent compared to 2019. Champagne volumes were up 7 percent compared to the first nine months of 2019. Growth was particularly strong in the United States and Europe, which notably benefited over the summer from the reopening of restaurants and the gradual recovery of tourism.

Hennessy cognac performed well with a 4 percent increase in volumes compared to 2019 while being limited by supply constraints. China and the United States experienced a strong rebound. The third quarter marked the integration for the first time of the prestigious Champagne Maison Armand de Brignac, in which LVMH has taken a 50 percent stake.

The Fashion & Leather Goods business group recorded organic revenue growth of 57 percent in the first nine months of 2021 compared to the same period of 2020 and 38 percent compared to 2019.

Growth in the third quarter of 2021 remained exceptional compared to the third quarter of 2020, which marked a return to growth after a declining first half of 2020. Louis Vuitton, which is celebrating the 200th anniversary of the birth of its founder, performed remarkably well, driven by constant innovation and by the quality of its products. Christian Dior showed exceptional momentum.

The latest fashion shows in Athens and Paris, highlighting the inspiring collections of Maria Grazia Chiuri, received an outstanding reception. Following its enormous success in Paris, London and Shanghai, the Christian Dior, Designer of Dreams exhibition opened in New York. At Fendi, Kim Jones’ first collection was successfully rolled out in stores. Celine enjoyed strong growth in its ready-to-wear and leather goods lines created by Hedi Slimane. Loewe and Marc Jacobs also performed very well.

The Perfumes & Cosmetics business group recorded organic revenue growth of 30 percent over the first nine months of 2021 compared to the same period of 2020. On an organic basis, revenue was down 2 percent compared to the first nine months of 2019.

In an environment marked by a limited recovery in international travel and the closure of many points of sale, the major brands continued to be selective in their distribution, limit promotions and grow online sales via their own websites. Christian Dior benefitted from the huge success of the new Miss Dior Eau de Parfum and Sauvage Elixir. The continued growth of the Collection Privée, as well as the Prestige and Capture Totale skincare lines also contributed to the rapid progress of the Maison. Guerlain enjoyed an excellent performance, driven by its Abeille Royale and Orchidée Impériale skincare lines. Maison Francis Kurkdjian benefitted from the successful launch of the Aqua Cologne Forte trio and the continued success of Rouge 540.

The Watches & Jewelry business group recorded organic revenue growth of 49 percent in the first nine months of 2021 compared to the same period of 2020 and 4 percent compared to 2019 (excluding Tiffany, which was consolidated for the first time in 2021).

Driven by the growing success of its iconic products, Tiffany enjoyed a remarkable performance, particularly in its major market, the United States. Bvlgari rolled out its new line of High Jewelry, Magnifica, and celebrated its Serpenti creations at the Metamorphosis exhibition in Milan. Chaumet, the first jeweler to have invested in 1812 on the legendary Place Vendôme in Paris, launched a new High Jewelry collection, Torsade, inspired by the movement of the frieze adorning the column of the Place. In watchmaking, TAG Heuer successfully launched a limited Super Mario edition of its smart watch for gaming enthusiasts.

In Selective Retailing, organic revenue was up 13 percent compared to the first nine months of 2020 and down 23 percent compared to the same period of 2019. Sephora returned to its 2019 level of activity despite the tough commercial environment, marked by the closure of several stores during part of the year. Online revenue showed strong growth throughout the world.

In addition to its own stores, Sephora expanded its distribution in the United States with its first Beauty spaces within Kohl’s department stores. After signing a partnership with the European online platform Zalando, Sephora acquired the British online distributor Feelunique, which specialises in prestige beauty. The expansion of its network continued in Asia, particularly in China. DFS remained heavily constrained by the very limited recovery in international travel to most destinations. La Samaritaine, which reopened in June following an ambitious renovation, is enjoying a promising start.

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Within the context of a gradual exit from the health crisis, the Group is confident in the continuation of the current growth; it will maintain a strategy focused on continuously strengthening the desirability of its brands, by relying on the authenticity and quality of its products, the excellence of their distribution and the reactivity of its organisation.