INTERNATIONAL. Luxury goods group LVMH Moët Hennessy Louis Vuitton posted Q1 revenues of €14 billion, up by +32% year-on-year (+30% on an organic basis). The performance marks a return to growth after several quarters of decline in 2020 due to the global pandemic. Organic revenue grew +8% compared to the first quarter of 2019.
All divisions posted growth except for Selective Retailing, which includes DFS Group (majority owned by LVMH) and Starboard Cruise Services. This business group was hit by the continued restrictions on international travel, with organic revenue declining -5% compared to the first quarter of 2020 and -30% compared to that of 2019.
LVMH said: “DFS continued to experience a significant decline in activity in most destinations due to the lack of international travel.”
Group-wide, the US and Asia enjoyed strong growth, while Europe remains affected by the crisis due to store closures and the suspension of tourism.
The Wines & Spirits business group recorded organic revenue growth of +36% compared to the same period in 2020 and +17% compared to that of 2019. Champagne volumes were up +22% compared to Q1 2020. Hennessy Cognac saw its volumes increase by +28% year-on-year. China experienced a strong rebound.
The Fashion & Leather Goods business group achieved organic revenue growth of +52% compared to Q1 2020 and +37% compared to Q1 2019. This was driven by “a remarkable performance” from Louis Vuitton plus a strong showing from Christian Dior.
In Perfumes & Cosmetics, organic revenue grew +18% in Q1 2021 compared to the same period in 2020 and was down -4% compared to the same period in 2019. LVMH said: “The major brands continued to be selective in their distribution and limit promotions. They benefited from the continued growth in online sales from local customers, which offset the impact of the suspension of international travel and the closure of many points of sale.”
The Watches & Jewelry business group recorded organic revenue growth of +35% in Q1 2021 compared to the same period of 2020 and +1% compared to that of 2019. The quarter marked the integration for the first time of Tiffany & Co, which saw an “excellent” start to the year.
