INTERNATIONAL. LVMH Moët Hennessy Louis Vuitton today announced revenue of €3.8 billion in the first quarter of 2007, a +13% rise in organic terms (+7% reported).
Selective Retailing, which includes DFS Group, enjoyed +11% organic growth to €941 million in the period. LVMH said: “DFS continued to benefit from the rapid development of Chinese tourism, although Japanese tourist spending was limited by the weakness of the Yen. Sephora maintained strong growth in all of its markets. The brand continued to win market share in France and the US.”
All business groups recorded double-digit organic revenue growth in the period. The US, Asia and Europe performed particularly well, said the company, due to continued high demand from both local clients and tourists.
Wines & Spirits achieved organic revenue growth of +15% in the first quarter of 2007. The champagne division, where volumes increased by +8%, had a good start to the year, particularly Moët & Chandon in Europe and Veuve Clicquot in Japan.
Rosé champagnes have made remarkable progress, said LVMH, most notably in the US. Hennessy cognac confirmed its strong momentum with volumes up by +18% and the higher quality ranges recording the strongest growth. Its fast development in China and Russia continued.
Fashion & Leather Goods recorded +10% organic revenue growth in the first quarter of 2007. Louis Vuitton achieved an exceptional performance with double-digit organic growth in all regions except Japan. The beginning of the year has seen numerous innovations in leather. The new Damier Azur line has also been exceptionally popular, said the company.
Fendi continued its growth in the first quarter, helped by the success of a new leather line and the progress of its shoe and ready-to-wear lines. The business group’s other brands, in particular Marc Jacobs, enjoyed an excellent first quarter.
In Perfumes & Cosmetics, organic revenue growth reached +15% in the first quarter, much better than the performance of the industry overall, said the group. The continued success of J’adore and Miss Dior Chérie and the promising launch of the new male fragrance, Fahrenheit 32, have enhanced Parfums Christian Dior’s strong growth.
The brand also benefited from the continued progress of the Rouge Dior lipstick and Capture skincare. Guerlain was lifted by the success of Insolence and the strong performance of its Terracotta makeup line. Parfums Givenchy revenue increased, notably thanks to the success of Ange ou Démon. The relaunch of Eaux par Kenzo and the roll-out of KenzoAmour were the principal drivers of Parfums Kenzo’s growth.
In the first quarter of 2007, the Watches & Jewelry business group recorded organic revenue growth of +27%. TAG Heuer performed exceptionally well in all regions. Zenith and Montres Dior also saw strong growth notably thanks to their respective lines Defy and Christal. Chaumet benefited from the success of its jewellery collection Attrape-moi and its Dandy watches.
LVMH said: “Thanks to the strength and creativity of its brands and its expansion into new markets, LVMH will continue its growth in 2007 despite the difficult monetary environment at the beginning of the year. Increasing market share and the profitability of its leading brands as well as improving the results of its developing companies remain LVMH’s top priorities. All of these elements allow us to confirm the objective of significant growth in the group’s results in 2007.”
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