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DFS navigates “difficult tourist environment” as LVMH grows

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Leading luxury products group LVMH Moët Hennessy Louis Vuitton announced it had recorded revenue of €26.3bn ($29.2bn) the first nine months of 2016, an increase of 4%. Organic revenue grew 5% compared to the same period in 2015.

LVMH’s Selective Retailing division, which houses duty-free arm DFS Group and beauty retailer Sephora, reported organic revenue growth of 6% for the period, despite a difficult tourist environment in Asia, particularly in Macau and Hong Kong.

After opening in Cambodia in H1 2016, DFS opened a new T Galleria in Venice, Italy, expanding its presence in major tourist destinations.

SEE ALSO: DFS and Luxottica seek differentiation with Ray-Ban concept in Hong Kong  

Sephora continued to gain market share in all markets, recording double-digit revenue growth. Online sales increased rapidly in all regions and Sephora continued its store-opening programme.

The group as a whole saw organic growth of 6% in Q3, an acceleration compared to the first half of the year. Asia, excluding Japan, showed a significant improvement during the quarter.

The United States remains well positioned, as does Europe, with the exception of France, which continues to feel the impact of a decline in the number of tourists.

(Source: DFNI Online)

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