LVMH revenues grow 4 percent in first nine months

LVMH Moët Hennessy Louis Vuitton recorded a 4 percent increase in revenue, reaching 26.3 billion euros (29.2 billion dollars), for the first nine months of 2016. Organic revenue grew 5 percent compared to the same period in 2015. With organic revenue growth of 6 percent, the third quarter saw an acceleration compared to the first half of the year. Asia, excluding Japan witnessed improvement during the quarter. The United States and Europe remained positive, with the exception of France.

In an uncertain geopolitical and currency environment, LVMH said, it will continue the strategy focused on innovation and targeted geographic expansion in the most promising markets.

LVMH reports revenue growth across segments

The fashion & leather goods business group recorded organic revenue growth of 2 percent for the first nine months with an acceleration in the third quarter. Louis Vuitton maintained strong momentum and ventured into a new territory with the launch of the Louis Vuitton perfumes.

Fendi generated revenue growth. Loro Piana inaugurated a flagship store in Paris on Avenue Montaigne. Céline, Loewe and Kenzo also experienced good growth. Marc Jacobs continued the repositioning of its collections. An agreement was announced for the sale of the Donna Karan business. LVMH announced the acquisition of a majority stake in the German Maison, Rimowa, global leader in luggage.

The perfumes & cosmetics business group recorded organic revenue growth of 8 percent. Parfums Christian Dior along with Sauvage and its latest innovations in the makeup segment were the main drivers of the growth of the brand. Guerlain successfully expanded its perfume brand, La Petite Robe Noire, into the world of makeup, a segment in which Givenchy saw strong growth.

The watches & jewelry business group recorded organic revenue growth of 4 percent for the first nine months. Bvlgari continued to gain market share and TAG Heuer made progress in a difficult market, benefiting particularly from the success of its new collections and its smartwatch.

The selective retailing business group posted organic revenue growth of 6 percent. Sephora continued to gain market share in all its markets and recorded double-digit revenue growth. Online sales rapidly increased in all regions and Sephora continued its store opening program. DFS navigated a difficult tourist environment in Asia, particularly in Macao and Hong Kong. After Cambodia in the first half, DFS opened in September a new T Galleria in Europe, in Venice, thus expanding its presence in major tourist destinations.

Picture:Louis Vuitton