INTERNATIONAL. LVMH Moët Hennessy Louis Vuitton’s Selective Retailing business group, which includes travel retail companies DFS Group and Starboard Cruise Services, posted modest organic revenue growth of +5% year-on-year for the first nine months of 2015.
LVMH noted: “DFS continued to navigate an uncertain geopolitical and currency context in some tourist destinations.”
LVMH, the world’s leading luxury products group, recorded an +18% increase in revenue for the period to €25.3 billion. Organic revenue rose +6% compared to the same period in 2014.
With organic groupwide revenue growth of +7% for the third quarter, the trend remains comparable to that recorded in the first half of the year, LVMH said, adding: “The Group continues to deliver strong growth in Europe and the United States, and is seeing an acceleration in Japan.”
Source for all tables: LVMH |
While DFS had its challenges, another Selective Retailing operation, domestic market perfumery chain Sephora, continued to gain market share in all its markets. Comparable store revenue growth was particularly strong, LVMH said, while online sales are rapidly increasing in all regions, “confirming Sephora’s leadership in the digital and mobile space”.
Looking forward, the group said: “In an uncertain economic and financial environment, LVMH will continue its strategy focused on innovation and targeted geographic expansion in the most promising markets. LVMH will rely on the power of its brands and the talent of its teams to further extend its global leadership in the luxury market in 2015.”
DIVISIONAL PERFORMANCE ANALYSIS
The Wines & Spirits business group recorded organic revenue growth of +7% in the first nine months of 2015 with a notable acceleration in the third quarter. Champagne volumes rose +5% ,driven by good performance in its main markets. Hennessy Cognac, whose volumes increased +12%, benefited in the third quarter from a strong rebound in shipments to China and continued excellent momentum in the United States. Other spirits Glenmorangie and Belvedere continue to grow rapidly, LVMH said.
The Fashion & Leather Goods business group recorded an organic revenue increase of +5% for the first nine months. Louis Vuitton continued its growth and displayed strong creative momentum in all of its collections, LVMH pointed out. Leathergoods in particular saw great success. Fendi generated strong revenue growth thanks to the “excellent” performance of all its products. Loro Piana continued the qualitative development of its store network. Céline, Givenchy and Kenzo experienced sustained revenue growth. Marc Jacobs and Donna Karan continued the repositioning of their collections.
The Perfumes & Cosmetics business group recorded organic revenue growth of +7%. Parfums Christian Dior continued to benefit from the momentum of its iconic fragrances J’Adore, Miss Dior and Dior Homme, and launched with great success its new men’s fragrance Sauvage. The make-up segment also contributed to the “excellent” performance of the brand thanks to its latest innovation Dior Addict Lipstick.
Guerlain was boosted by the growing success of its perfumes and its premium skincare ranges Abeille Royale and Orchidée Impériale. Benefit, Fresh and Make Up For Ever all enjoyed excellent performance, LVMH said.
The Watches & Jewelry business group recorded organic revenue growth of +10% for the first nine months. Bvlgari performed “remarkably well”, driven by all product categories and all regions of the world. Hublot grew rapidly and increased its production capacity with the opening of its second production facility in Nyon, Switzerland. TAG Heuer continued the development of its core offering. Its new smartwatch, made in partnership with Google and Intel, will be unveiled in November.
