LVMH Group reported a 3 percent organic sales uptick to EUR 20.7 billion in the first quarter, with Asia revenues falling by single digits, partially offset by gains across Japan.
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The 3 percent sales increase was a slowdown in growth from the 10 percent sales jump in the prior fourth quarter. On a reported basis, sales at the group were down 2 percent, largely due to currency effects.
By segment, the French luxury giant’s wines and spirits business saw a 12 percent revenue decline, while fashion and leather goods business achieved organic revenue growth of 2 percent.
The Parisian firm’s perfumes and cosmetics business achieved organic revenue growth of 7 percent, and watches and jewellery segment was down 2 percent for the quarter ending March 31.
Finally, in selective retailing, organic revenue growth was 11 percent, with Sephora once again achieving “remarkable growth.” The company’s DFS retailer remained below its 2019 pre-Covid level of business activity, affected by international travel only partially recovering in Europe and at flagship destinations Hong Kong and Macao.
By region, LVMH said organic sales were up 2 percent in the U.S. and Europe in the first quarter, while Asia, excluding Japan, clocked a 6 percent drop, reflecting a tougher comparison base, and the trend in Chinese consumers buying more when they travel.
Japan revenues were up double digits, said the luxury group.
“LVMH had a good start to the year despite a geopolitical and economic environment that remains uncertain,” said the owner of Louis Vuitton, Tiffany & Co. and Dior, among many others.
“In an uncertain geopolitical and economic environment, LVMH remains both vigilant and confident at the start of the year. The group will continue to pursue its strategy focused on the development of its brands, driven by a sustained policy of innovation and investment as well as by a constant quest for quality in its products, their desirability and their distribution.”
The earnings update from LVMH comes one month after rival luxury conglomerate Kering issued an advisory ahead of the release of its first quarter 2024 revenue on April 23, projecting a decline in consolidated revenue for the first quarter of the year.