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The Gallerias in Hong Kong and Macao (pictured) turned in strong performances in Q1, LVMH said |
INTERNATIONAL. LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury goods group, recorded a +25% increase in first quarter 2012 revenue to €6.6 billion. Organic revenue growth was +14% compared to the same period in 2011.
In the key Selective Retailing division, which includes DFS, organic revenue growth stood at +18% (+28% reported) in Q1, with revenues hitting €1.8 billion.
LVMH said: “DFS continued to profit from the rapid growth in Asian tourism which particularly benefited the Gallerias in Hong Kong and Macao.”
Also in that division, it added, “Sephora won market share in key regions. Online sales enjoyed rapid growth. Sephora continued to expand its network of stores and will soon open in Brazil and in Scandinavia.”
Overall, the group said it “continued its excellent momentum at the start of the year with particularly fast growth in Asia and in the United States and good progress in Europe despite the contrasting environment”.
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The Wines & Spirits business group recorded organic revenue growth of +16% in the first quarter. Champagne registered volume growth of +5% during the period and its prestige brands continued to perform well. Hennessy Cognac had an “excellent start” to the year across all of its product qualities with volume growth of +9% and positive impacts from its product mix and significant price increases.
The Fashion & Leather Goods business group recorded organic revenue growth of +12% in Q1. Louis Vuitton continued its progress and one of the highlights of the quarter was the opening of the first Louis Vuitton “Maison” in Italy in a mythical cinema theatre in Rome. Fendi had a good start to the year and continued the renovation of its store network. The other brands saw rapid growth in their activities. Céline in particular recorded strong revenue growth due to the success of its collections, said LVMH.
In Perfumes & Cosmetics, organic revenue growth stood at +9% in the quarter. Christian Dior continued to benefit from the momentum of its leading perfumes J’Adore, Miss Dior and Dior Homme. Skincare and makeup also contributed to this strong performance thanks to the growth of Dior Prestige and Dior Addict. Guerlain’s new perfume La Petite Robe Noire, had an excellent launch and the skincare range Orchidée Impériale continued its strong growth across the world, LVMH said. Givenchy benefited from the performance of its new Very Irresistible product and new marketing campaign. Benefit and Make Up For Ever recorded remarkable growth.
The Watches & Jewelry business group recorded organic revenue growth of +17% in the quarter. All LVMH brands enjoyed good momentum in Europe and expansion of the store network continued in Asia. With an increase in retail orders compared to last year, the new watches presented at Basel were “very well received”, most particularly TAG Heuer’s Link Lady, Hublot’s early models made with its new Magic Gold and Zenith’s Pilot Aéronef. In jewelry, Bulgari had an “excellent” start to the year, led by the performance of its Serpenti collection. Chaumet registered good growth in its Asian distribution network.
The company said: “In an economic environment which remains uncertain in Europe, LVMH will continue to focus its efforts on developing its brands, will maintain a strict control over costs and will target its investments on the quality, the excellence and the innovation of its products and their distribution. The Group will rely on the talent and motivation of its teams, the diversification of its businesses and the good geographical balance of its revenues to increase, once again in 2012, its leadership of the global high quality products market.”
