Slower growth LVMH despite very strong retail performances | RetailDetail

Slower growth LVMH despite very strong retail performances

Slower growth LVMH despite very strong retail performances

French luxury company LVMH had a rise in sales of 6% to 6.95 billion euro in the first quarter of 2013. That is significantly less than in the same quarter a year ago, when the parent company of Louis Vuitton succeeded in boosting its sales with no less than 25%.

‘Selective Retailing’ strongest grower

The quarterly sales of LVMH are in line with expectations, but the results of the fashion and leather goods branch were disappointing (+3% on a comparable basis). With brands such as Louis Vuitton, Fendi and Céline that branch is still the largest activity of the company, worth sales of 2.38 billion euro.

 

Right on their tail however is Selective Retailing: the branch including tax-free chain DFS and chain of perfumeries Sephora signs off on the biggest growth (+17%) and has quarterly sales of 2.212 billion euro.

 

“DFS recorded an excellent performance driven by continued growth in Asian tourism despite a decline in expenditure from Japanese tourists resulting from the weaker yen”, LVMH says. Sephora gained market share on all of its markets and is continuing its global expansion, with among other the recent opening of a location in Shanghai, the largest in China (photo).

 

The wines & spirits department (Hennessy, Glennmoragie…) grew by 7% and is coming nearer to the milestone of one billion euro in sales.

 

Slight drop “watches & jewelry”

The other departments of LVMH seem to suffer from the economic crisis a bit more. Sales of the Perfume & Cosmetics branch (Christian Dior, Guerlain…) rose by only 3.7% to 932 million euro and the watches & jewelry department is struggling even more: a growth of only 2% on a comparable basis: in total there was even a drop in sales of almost one percent to 624 million euro.

 

“In an economic environment which remains uncertain in Europe, LVMH will continue to focus its efforts on developing its brands,” the world’s largest luxury goods company said in the statement, which was released after markets closed. It will also “maintain a strict control over costs,” it said.

Questions or comments? Please feel free to contact the editors


EU votes for better organic label legislation

20/04/2018

European Parliament adopted a bill to regulate the organic industry: things will be stricter, but also fairer and clearer. An organic label and importation legislation should help promote Europe’s local organic manufacturing companies.

Heineken and Bavaria seek fortune outside of Europe

19/04/2018

Even though the European beer market continues to struggle, Dutch brewery groups Heineken and Bavaria have published growing turnovers. Bavaria set a record turnover, Heineken raised its turnover 4.3 % in the past quarter.

Danone boasts strongest like-for-like turnover increase in past five years

19/04/2018

French food giant Danone’s first quarter was an impressive one: like-for-like turnover grew 4.9 %, its best performance in the past five years.

Weak dollar has negative impact on Unilever

19/04/2018

Unilever has seen its first quarter turnover drop more than 5 % because of negative exchange rate fluctuations. Excluding that impact, the food and care product manufacturer’s turnover would have grown 3.4 %.

End in sight for price dispute between Nestlé and Colruyt, Edeka and Intermarché?

17/04/2018

ColruytEdeka and Intermarché are approaching a deal in their price dispute with Nestlé. The Swiss food manufacturer will make concessions in a new proposal as the retailers’ supplies are dwindling.

Carrefour and E.Leclerc start arms race for urban pick-up locations

17/04/2018

The French e-commerce market has seemingly opened up a new area of competition: Carrefour and E.Leclerc have both opened so-called “drives piéton”, pick-up locations for pedestrians in urban centers.