INTERNATIONAL. Leading luxury goods group LVMH Moët Hennessy Louis Vuitton posted revenue growth of +10% in the first nine months of 2023 (+14% organic), with the figure reaching €62.2 billion.
All business groups reported sustained organic revenue growth over the period, with the exception of wines & spirits, which faced a high basis of comparison year-on-year. Europe, Japan and the rest of Asia achieved double-digit organic growth. In the third quarter, organic revenue growth came to +9%.
In Selective Retailing, which includes DFS Group (majority owned by LVMH) and Starboard, organic revenue growth was +26% (+23% reported) in the first nine months.
The group noted: “DFS benefited from the gradual recovery in international travel and, in particular, from the return of tourists to the flagship destinations of Hong Kong and Macau.” It cited a strong increase in store traffic in both locations. LVMH also flagged up the significance of the recent reopening of the Waikiki Galleria in Hawaii and the planned DFS Yalong Bay project, as reported recently.
The Wines & Spirits business group saw a revenue decline (-7% organic) in the period, faced with a high basis of comparison with the same period in 2022. The Champagne business grew despite more moderate demand in the third quarter. Hennessy Cognac was affected in the US by the economic environment, the post-COVID normalisation of demand and the continued high inventory levels of its retailers.
The Fashion & Leather Goods business group achieved organic revenue growth of +16% in the first nine months. Louis Vuitton delivered “an excellent performance”, while Christian Dior continued to deliver “remarkable growth” in all product categories. The group also singled out the performances of Celine, Loewe, Loro Piana, Fendi, Rimowa, Marc Jacobs and Berluti in the period.
The Perfumes & Cosmetics business group achieved organic revenue growth of +12% in the period, with Christian Dior fragrances and skincare making key contributions. Guerlain continued to grow, driven in particular by its popular Aqua Allegoria scents and premium fragrance collection l’Art et la Matière, as well as the strong response to its Terracotta Le Teint makeup.
The Watches & Jewelry business group achieved organic revenue growth of +9%, with Tiffany continuing its store network opening and renovation programme, and Bulgari delivering strong growth. ✈
