LVMH Q1 sales soar

Luxury conglomerate LVMH has seen its first quarter sales rise 15 percent due to strong sales of champagne, handbags and anti-wrinkle creams. The company enjoyed robust performances in the US and Asia , with sales for the period reaching €3.56 billion. “All lights remain green,� LVMH's finance director Jean-Jacques Guiony said during a conference call. “All business and all regions witnessed an acceleration of their organic growth.� The most profitable divisions were wines and spirits, up 23 percent to €632 million; watches and jewellery with a 23 percent gain to €150 million; and fashion and leather goods up 14 percent to €1.29 billion. The results exceeded analysts' expectations.

The Louis Vuitton brand, the group's strongest, reported double-digit organic growth in all markets except Japan , where growth remained in the high single digits. The brand's first suede bags and monogram styles with perforated or raspberry-coloured leather have helped drive worldwide sales.

The group was also pleased with double-digit growth at Fendi, thanks to the continued success of the Spy bag and solid sales of its new B. Fendi line. “We are very proud of the turnaround of the brand,� said Guiony. He also pointed out that Marc Jacobs, Pucci, Berluti and Loewe all enjoyed “good momentum� but would not say much about progress at Celine, Givency and Donna Karan. Of Karan he only said that the brand had been affected by store closings and the discontinuation of some businesses. He added that “it's going according to our plans and we expect to get more growth in the months and years to come�.

Sales in the US and Asia were particularly strong, with gains in fashion and leather goods of 11 percent and 19 percent respectively. US sales were boosted by the “outstanding� performance of cosmetics chain Sephora. Sales in Europe and Japan continued to bounce back. Meanwhile, Christian Dior SA, parent of LVHM and fashion house Christian Dior, released similar first quarter results. Sales at Christian Dior Couture rose 13 percent to €165 million. The company said that all geographic regions had contributed to the growth. It also said that a top seller was its new Gaucho range of leather goods products.