INTERNATIONAL. LVMH Moët Hennessy Louis Vuitton recorded a +16% increase in revenue to €38.4 billion in the first nine months of 2019. Organic revenue grew +11% compared to the same period in 2018.
The Selective Retailing business group achieved organic revenue growth of +6% (+11% reported) in the period, despite a sharp downturn in the Hong Kong market for DFS.
LVMH said: “At DFS, the Venice Galleria is enjoying good momentum, benefiting in particular from strong demand from international travellers. DFS continued to grow over the first nine months of the year despite the slowdown in Hong Kong.”
As we reported recently, the DFS business has been hit hard in Hong Kong, traditionally a highly significant share of the company’s profitability. As reported in our 17 September eZine, DFS’s business there was down by well over -50% in August due to the impact of the Hong Kong protests on tourism.
DFS Group also recently announced big cuts to its workforces in Hawaii and Singapore, driven principally by an Asian tourism slump in Hawaii and the impending exit from the Changi Airport liquor & tobacco concession.
In the same Selective Retailing division, Sephora recorded steady growth in revenue and gained market share while online sales continued to grow, said LVMH.
In the third quarter, LVMH revenue was up +17% compared to the same period in 2018. Organic revenue growth was +11%, a performance in line with the trend recorded in the first half of the year. The USA and Europe saw good progress in the third quarter, as did Asia, said LVMH, despite the difficult Hong Kong business.
The Wines & Spirits business group recorded organic revenue growth of +7% (+10% reported) in the first nine months. Growth was strong in China as well as in the USA due to steady demand. Champagne volumes were down slightly over the period. Prestige vintages experienced strong growth while continuing a price increase policy throughout the range. Hennessy Cognac volumes increased by +10%, driven by the VS ranges.
The Fashion & Leather Goods business group achieved organic revenue growth of +18% (+22% reported) in the period. Louis Vuitton enjoyed “a remarkable performance in all its businesses and in all regions,” said LVMH. Highlights included the opening of a new workshop in France and the creation of a “Louis Vuitton X” exhibition in Los Angeles, which traces the history of the Maison.
Christian Dior also made progress, including through a new Champs-Elysées boutique in Paris. Fendi unveiled several partnerships in the world of art and music. Celine launched its first haute parfumerie collection, for which a dedicated boutique will open soon in Paris. Loro Piana, Loewe and Rimowa delivered good progress. The other Maisons continued to strengthen, noted LVMH.
The Perfumes & Cosmetics business group recorded organic revenue growth of +8% (reported +11%) in the first nine months, driven mainly by the momentum of its flagship brands. Parfums Christian Dior performed well, particularly with the vitality of its main fragrance lines. Makeup and skincare were significant areas of growth. Guerlain made “remarkable progress, driven by the Abeille Royale skincare and the Rouge G and L’Essentiel makeup lines”. Parfums Givenchy saw rapid growth of its new fragrance, L’Interdit, and its makeup line. Fresh, Fenty Beauty by Rihanna and Acqua di Parma made good progress, said the group.
The Watches & Jewelry business group recorded organic revenue growth of +4% (+8% reported), driven by jewellery. Bvlgari lines Serpenti, B.Zero1, Diva and Fiorever, as well as the new Serpenti Seduttori watch collection contributed to this performance. After Beijing in 2017 and Tokyo in 2018, this summer, Chaumet presented its new exhibition in Monaco called Chaumet in Majesty.
Commenting on the wider market, LVMH said in a statement: “In a growth environment since the beginning of the year, albeit marked by an uncertain geopolitical context, LVMH will continue to be vigilant. The group will pursue its strategy focused on innovation and targeted geographic expansion in the most promising markets.”
