LVMH Group posted strong first-quarter sales on strong gains across all business groups, as the European company highlighted growth in its leather goods division and brand Louis Vuitton.
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The French conglomerate said revenues rose 16% to 12.5 billion euros, up 11% on a comparable sales basis, without the impact of currency swings and acquisitions or disposals. The result beat out analysts’ expectations, according to Reuters.
LVMH, which owns other labels including fashion brand Christian Dior and Krug champagne, said sales were boosted by a strong performance in its leather goods unit.
The group’s fashion and leather business achieved organic revenue growth of 15% in the first quarter, as namesake brand “Louis Vuitton continued its remarkable growth across all of its businesses,” said the group, which does not disclose individual brand sales.
LVMH said its wines & spirits business recorded organic growth of 9%, matched by the perfumes & cosmetics segment, with a revenue increase of 9% in the first quarter.
The latter was driven by the performance of Parfums Christian Dior and Guerlain cosmetics experienced strong growth momentum, on its Abeille Royale skincare and Rouge G lipstick. Meanwhile, Fenty Beauty by Rihanna continued to grow rapidly, said the group.
LVMH’s watches & jewelry business recorded organic revenue growth of 4%, driven by the performance of its jewelry.
“In the buoyant environment of the beginning of this year, albeit marked by geopolitical uncertainties, LVMH will continue to focus its efforts on developing its brands, maintaining strict control over costs and targeting its investments on the quality, excellence and innovation of its products and their distribution,” said LVMH Group, in a press release.
Looking forward, LVMH said it will “rely on the talent and motivation of its teams, the diversification of its businesses and the geographical balance of its revenue to reinforce, once again in 2019, its global leadership position in luxury goods.”
Following Wednesday’s announcement, LVMH’s shares hit a record high on Thursday, up 3.3% in early session trading.