French luxury concern LVMH's turnover has grown 16 % over the past quarter to 8.3 billion euro, thanks to the beneficial exchange rates. All divisions, aside from the liquor division, managed to grow, although the company's organic growth slowed down overall.
Organic growth slows down
The luxury group managed to achieve a 3 % growth when exchange rates are excluded, which is not bad, but still not as good as the 5 % increase in 2014. Its leatherwear branch, with Louis Vuitton as its main brand, grew 1 % (compared to 4 % in 2014's final quarter).
The watch and jewelry division, with Bvlgari as main brand, managed a 7 % organic growth (compared to 3 % the previous quarter). The "selective retailing" branch (containing tax-free and the Sephora perfume chain) grew 5 %, while the perfume and cosmetics branch (containing Dior, Guerlain and Givenchy) added another 6 %.
The only downside was the liquor division, as champagne, brandy and whisky sales dropped 1 % in this year's first quarter. The Chinese anti-corruption legislation is still a hindrance to brands like Moët & Chandon, Dom Pérignon and Glenmorangie: Chinese businesses used to hand out huge gifts, usually luxury products, recently until a new law made it much harder to do so. Only Hennessy established some growth: the brandy performed well in the American market.