With organic revenue growth of 4% in the third quarter, the trend remains comparable to that recorded in the first half of the year. An improved growth rate in Europe and the United States during the quarter compensated for the slowdown observed in Asia.
LVMH Moët Hennessy Louis Vuitton
LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded a 4% increase in revenue to reach €21.4 billion for the first nine months of 2014. Organic revenue also grew by 4% compared to the same period in 2013. All business groups grew except Wines & Spirits which continues to be affected by destocking by distributors in China.
Revenue by business group:
first 9 months
|In million euros|| |
|Wines & Spirits||2 625||2 827||– 7 %||– 3 %|
|Fashion & Leather Goods||7 677||7 139||+ 8 %||+ 3 %|
|Perfumes & Cosmetics||2 800||2 683||+ 4 %||+ 8 %|
|Watches & Jewelry||1 972||1 930||+ 2 %||+ 5 %|
|Selective Retailing||6 616||6 291||+ 5 %||+ 8 %|
|Other activities & eliminations||(293)||(248)||ns||ns|
|Total||21 397||20 622||+ 4 %||+ 4 %|
* Restated to reflect the application of IFRS 10 and 11 on consolidation.
** With comparable structure and constant exchange rates. The structural impact, essentially linked to the integration of Loro Piana, is +2% and the exchange rate impact is -2%.
The Wines & Spirits business group saw its organic revenue decline by 3% in the first nine months of 2014. This trend reflects the cognac market in China where destocking by distributors continued while Hennessy benefited from an excellent momentum in the United States. The champagne business continued to perform well in the third quarter, driven by strength in the American and Japanese markets.
The Fashion & Leather Goods business group recorded organic revenue growth of 3% for the first nine months of the year. Louis Vuitton continued its strong momentum in innovation and creative development driven by Nicolas Ghesquière. True to the Maison’s spirit of innovation, collaboration and boldness, the launch of the new Monogram collection, as interpreted by six famous designers, will be one of the highlights of the fourth quarter. In parallel, new leather lines continue to progress. Loro Piana remained focused on its strategy of qualitative development. Fendi and Céline made good progress and continued to expand their leather goods and footwear collections while developing their store networks. Other brands, such as Givenchy, Berluti and Kenzo, continued to strengthen their positions.
The Perfumes & Cosmetics business group recorded organic revenue growth of 8% for the first nine months of 2014, outperforming the market. Parfums Christian Dior continued to benefit from the momentum of its iconic products, in particular with new momentum for J’Adore and the success of Dior Addict. The make-up segment also contributed to the good performance of the brand. Guerlain was boosted by the launch of its new men’s fragrance, L’Homme Idéal, and the growing success of its premium skincare range Abeille Royale. Fresh, Benefit and Make Up For Ever enjoyed excellent performances.
The Watches & Jewelry business group recorded organic revenue growth of 5% for the first nine months of 2014. The third quarter showed a notable acceleration in the jewelry segment, driven notably by Bvlgari, while watches continued to be impacted by the cautious purchasing behaviour of multi-brand retailers in an uncertain economic environment. The launch of the new watch for women Lvcea by Bvlgari and the success of Hublot’s iconic lines were the key highlights of the quarter.
The Selective Retailing business group recorded organic revenue growth of 8% for the first nine months of 2014. DFS benefited from sustained airport activity while certain tourist destinations suffered the repercussions of financial or geopolitical changes. Sephora continued to gain market share in key regions. Comparable store revenue growth was particularly strong in the United States and the Middle East. The expansion of the distribution network continues with the opening of its first stores in Indonesia. Online sales are rapidly increasing in all regions, confirming its leadership in the digital and mobile space.
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 2014.