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


China trials mobile supermarket without employees

26/06/2017

A mobile, fully autonomous supermarket has opened its doors in Shanghai, one of China’s largest cities. The pilot is called Wheelys Moby Mart, open 24 hours a day and said to be easily deployable.

Opinion: More worries about Colruyt than Ahold Delhaize

23/06/2017

Both Ahold Delhaize and Colruyt suffered blows on the stock exchange as it seems like investors have completely lost faith in supermarket shares. However, they are not all alike, because Ahold Delhaize seems to bounce back, unlike Colruyt.

Cash register-free Amazon supermarket still not open

23/06/2017

Amazon’s cash register-free supermarket, Amazon Go, still has not opened to the general public and now one of its directors will leave Amazon.

Danone streamlines its European organization

23/06/2017

Dairy manufacturer Danone is to optimize its European organization: Belgium, the Netherlands, the United Kingdom and Ireland are to form one cluster. Kris Geeraert, general manager Benelux, will leave the company.

Diageo buys George Clooney's tequila brand for 620 million euro

22/06/2017

British liquor group Diageo has paid 700 million dollars (about 620 million euro) for George Clooney’s premium tequila brand Casamigos and that could rise to 1 billion dollars.

AB InBev wants to sell two German beer brands

21/06/2017

AB InBev is looking for a buyer for its German beer brands Hasseröder and Diebels. The Belgian beer giant hopes to attract about 200 million euro for both brands.

Back to top