The biggest growth for LVMH was in sales in the flagship fashion and leather goods segment, which was up by 22 percent in the first nine months of the year compared to the same period in 2018.
The luxury brands of LVMH Moët Hennessy Louis Vuitton, the French multinational luxury goods conglomerate, is showing no more signs of being hit by the global economic downturn.
Despite the mass disruption to life in Hong Kong, the fears of Brexit in Europe and the US trade war with China, third-quarter sales of fashion and leather goods rose 19% as the Paris-based company flagged “remarkable” performance at Louis Vuitton, Fendi, Givenchy and Christian Dior, making a nonsense of forecasts by Bloomberg and Factset.
LVMH revenue reached 38.4 billion euros (US$42.14 billion) in the first nine months of 2019.
LVMH, the world’s leading luxury products group, recorded a 16% increase in revenue, reaching € 38.4 billion in the first nine months of 2019. Organic revenue grew 11% compared to the same period of 2018.
Learn more➡️https://t.co/TMHcp0CXrF#LVMH pic.twitter.com/A8ffRC62Gv
— LVMH (@LVMH) October 9, 2019
“In the third quarter, 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 United States and Europe saw good progress in the third quarter, as did Asia, despite the difficult context in Hong Kong,” LVMH said in a statement.
Total sales at LVMH, which also makes Dom Perignon champagne and owns cosmetics retailer Sephora, rose 11% to 13.3 billion euros (US$14.6 billion).
The biggest growth was in sales in the flagship fashion and leather goods segment, which was up by 22 percent in the first nine months of the year compared to the same period in 2018.
“Louis Vuitton enjoyed a remarkable performance in all its businesses and in all regions. The “Louis Vuitton X” exhibition in Los Angeles, which traces the history of the Maison and celebrates its many artistic collaborations, has been a great success. Louis Vuitton continued to strengthen its production capacity with the inauguration in September of a new workshop in France. Christian Dior also made remarkable progress. The new Champs-Elysées boutique in Paris, which combines innovative experiences with architectural virtuosity, has been very well received. 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 enjoyed good progress. The other Maisons continued to strengthen,” LVMH said.
“The Perfumes & Cosmetics business group recorded organic revenue growth of 8% in the first nine months of 2019, driven mainly by the momentum of its flagship brands. Parfums Christian Dior performed well, particularly with the vitality of its iconic fragrances and the new Joy and Sauvage ranges. 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.
“In the first nine months of 2019, the Watches & Jewelry business group recorded organic revenue growth of 4%, driven by jewelry. Bvlgari enjoyed an excellent performance, especially in its own stores. Its iconic 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; “Chaumet in Majesty. Jewels of Sovereigns since 1780”. In watches, TAG Heuer continued to focus on its iconic lines. Hublot made solid progress, continuing to enrich its lines with new models from several collaborations.
“The Selective Retailing business group achieved organic revenue growth of 6% in the first nine months of 2019. Sephora recorded steady growth in revenue and gained market share in all key markets. Online sales continued to grow at a rapid pace. The expansion of its distribution network continued with the opening of its first stores in Hong Kong and Auckland. 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.”
LVMH wrote about the future.
“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. 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 2019,” it said.
LVMH shares have risen 38% this year.