INTERNATIONAL. LVMH’s Selective Distribution business group, which includes DFS, recorded revenue growth of +5% in the first nine months of 2009, compared to the same period last year. Sales for the division were €3,167 million.
“In a difficult environment for international travel, DFS performed solidly in its Asian markets,” said LVMH. “The recent opening of the second Galleria in Macau strengthened the Group’s presence in destinations frequented by Chinese tourists. Sephora continued to expand its store network and recorded revenue growth due to its increasingly diverse offering and range of innovative services. Sephora increased its market share in Europe and the US and confirmed its strong potential in Asia and the Middle East.”
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LVMH as a group reported flat sales compared to the January-September period in 2008, with the figure hitting €11.9 billion.
The company noted: “The Group delivered a resilient performance in Europe and continues to show strong momentum in Asia, particularly in China.
“The revenue reduction of only -3% in the third quarter of 2009, at constant scope and exchange rates, is attributable essentially to the continued de-stocking by distributors for our businesses that do not sell directly to their final customer. The third quarter reflects an improvement from the trends seen earlier in the year, implying that the end of this phenomenon may be approaching. In the third quarter, all business groups recorded better performances than in the first half. This was notably the case for Wines & Spirits and Watches & Jewelry.”
In Wines & Spirits, de-stocking by distributors impacted revenue in the first nine months, said the group. However, there was a notable improvement in performance in the third quarter. Champagne continued to be the most negatively affected, while Hennessy Cognac had a strong performance in emerging markets and recorded an improvement in the US.
Fashion & Leather Goods achieved revenue growth of +7% for the first nine months of the year. Louis Vuitton further strengthened its position with double-digit revenue growth. Its store network continues to expand in China, where the brand performed exceptionally well, said LVMH. A new store is to be inaugurated in Mongolia.
In Perfumes & Cosmetics, Christian Dior continued to benefit from a strong performance by J’Adore and the brand launched its new lipstick Sérum de Rouge. Guerlain enjoyed a strong debut of its new feminine fragrance Idylle, said LVMH.
The Watches & Jewelry business group recorded a -19% revenue decrease in the first nine months of 2009 due to de-stocking by distributors.
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