LVMH Moët Hennessy Louis Vuitton, the world’s leading high quality products group, recorded a 6% increase in first quarter 2013 revenue to 6.9 billion Euros. Organic* revenue growth was 7% compared to the same period in 2012, which saw a sharp rise.
The Group continued at the start of the year to perform in line with the trends of the second half of 2012 with strong growth in Asia and the United States, while Europe demonstrates good resistance despite a challenging economic environment.
Revenue by business group:
|Euro millions||Q1 2013||Q1 2012||% change Q1 2013 / Q1 2012|
|Wines & Spirits||979||926||+ 6 %||+ 7 %|
|Fashion & Leather Goods||2 383||2 374||+ 0,4 %||+ 3 %|
|Perfumes & Cosmetics||932||899||+ 4 %||+ 5 %|
|Watches & Jewelry||624||630||- 1 %||+ 2 %|
|Selective Retailing||2 122||1 823||+ 16 %||+ 17 %|
|Other activities and eliminations||(93)||(70)||-||-|
|Total||6 947||6 582||+ 6 %||+ 7 %|
* With comparable structure and constant exchange rates.
The Wines & Spirits business group recorded organic revenue growth of 7% in the first quarter of 2013. Champagne was notably robust in Asia, which compensated for softer demand in Europe. Hennessy cognac continued its excellent momentum, with a solid performance in the United States and rapid growth in China. Other spirits, including Glenmorangie and Belvedere, experienced a good start to the year.
The Fashion & Leather Goods business group recorded organic revenue growth of 3% in the first quarter of 2013. With a strategy founded on the innovation and quality of its products and their distribution, Louis Vuitton continued its progress. Louis Vuitton relies on its incomparable know-how to further strengthen its product lines in order to offer its clients the highest quality and best service. Fendi benefited from continued developments in fur and leather and pursues its program of enlarging its store network. Céline made excellent progress in its own stores. The other brands continued to develop well.
In Perfumes & Cosmetics, organic revenue growth was 5% in the first quarter of 2013. Christian Dior recorded further solid growth thanks to the vitality of its perfumes and, in particular, the continued strength of J’adore, Miss Dior and Dior Homme. The new lipstick Dior Addict and the premium skincare Prestige also contributed to the brand’s growth. Guerlain continued to benefit from the strong momentum of La Petite Robe Noire and the success of its high-end skincare Orchidée Impériale. Givenchy rolled out its fragrance Gentlemen Only, with Simon Baker as its muse. Benefit and Fresh continued to strengthen their positions thanks to their strongly innovative products.
The Watches and Jewellery business group recorded organic revenue growth of 2% in first quarter 2013, on top of a strong performance in the same period in 2012. This performance was achieved in a context of prudent buying by multi-brand retailers. TAG Heuer’s first quarter was marked by the 50th anniversary of its Carrera line and the new partnership with McLaren which was announced at the Geneva Motor Show. Hublot and Zenith also had a good start to the year. In jewelry, Bulgari confirmed the success of its Serpenti line and recorded strong revenue growth in its own stores.
In Selective Retailing, organic revenue growth stood at 17% in the first quarter of 2013. DFS recorded an excellent performance driven by the continued growth in Asian tourism despite a decline in expenditure from Japanese tourists resulting from the weaker Yen. Sephora gained market share in all its regions and continued to expand its global store network with, in particular, the opening in Shanghai of its largest store in China. Online sales also experienced rapid growth during the period.
In an economic environment which remains uncertain in Europe, LVMH will continue to focus its efforts on developing its brands, will maintain a strict control over costs and will target its investments on the quality, the excellence and the innovation of its products and their distribution. The Group will rely on the talent and the motivation of its teams, the diversification of its businesses and the good geographical balance of its revenues to increase, once again in 2013, its leadership of the global high quality goods market.
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