LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury group, achieved revenue of 4 billion euros in the first quarter of 2008. Organic* revenue increased by 12% compared to the same period in 2007, which was also a period of strong growth. As a result of the negative impact of exchange rates, reported revenue growth is 5%.
All business groups recorded double-digit organic revenue growth in the period, with the exception of Wines & Spirits. The Group continued to record excellent performances in Asia, the US and Europe.
By business group, the progress was as follows:
|In million euros||Q1 2008||Q1 2007||Variation Q1 2008 / Q1 2007|
|Wines & Spirits||640||689||- 7 %||+ 1 %|
|Fashion & Leather Goods||1 445||1 347||+ 7 %||+ 14 %|
|Perfumes & Cosmetics||717||663||+ 8 %||+ 13 %|
|Watches & Jewelry||211||189||+ 12 %||+ 19 %|
|Selective Retailing||1 011||937||+ 8 %||+ 15 %|
|Other activities and eliminations||(22)||(21)||-||-|
|Total||4 002||3 804||+ 5 %||+ 12 %|
* With a comparable structure and at constant exchange rates.
In Wines & Spirits, excluding the exchange rate impact, price increases applied since the beginning of the year offset the decrease in sales volumes incurred during the quarter due to the adverse timing of price increases compared to 2007. The champagne division made good progress in promising markets such as Russia, Asia and Latin America. Hennessy cognac continued its rapid growth in China, Russia and Vietnam.
Fashion & Leather Goods achieved 14% organic revenue growth in the first quarter of 2008. Louis Vuitton continued to perform exceptionally well over the period, recording double-digit organic revenue growth once more. The brand achieved particularly significant increases in the US, Europe and Asia. The new products, resulting from the collaboration between Marc Jacobs and Richard Prince, generated remarkable enthusiasm from clients. The reopening of the Maison Louis Vuitton in Hong Kong was one of the highlights of the first quarter. The other brands of this business group recorded an excellent first quarter.
In Perfumes & Cosmetics, organic revenue growth reached 13% in the first quarter of 2008. Christian Dior continued to show great momentum reflecting the sustained progress of J’Adore as well as the success of Midnight Poison, the new Addict High Shine lipstick and Capture skincare. Guerlain continued its strong progress throughout the whole range of its products. Europe and Asia were the main drivers of growth. Parfums Givenchy benefited from the rapid development of Ange ou Démon. The other brands achieved solid growth and are pursuing their expansion.
The Watches & Jewelry business group recorded organic revenue growth of 19% in the first quarter of 2008. TAG Heuer performed extremely well thanks to the successful Grand Carrera collection. Zenith launched a new model, Chronomaster Grande Date. The exceptional success of the Christal collection was confirmed at Montres Dior. Chaumet and De Beers increased their revenue and continued their network expansion. Innovations by TAG Heuer, Zenith and Dior unveiled at the Basel fair contributed to large increases in orders.
In Selective Retailing, organic revenue growth reached 15% in the first quarter of 2008. DFS continued to benefit from the development in Asia of Chinese tourism and recorded consistent revenue growth. The increase in Japanese tourist spending supported by a stronger yen compared to the dollar also contributed to this good performance. Sephora recorded strong growth on a comparable store basis in all its markets and significantly increased its market share. Its expansion has continued in the first quarter thanks to new store openings and a strong culture of product innovations, which attracted new clients.
Thanks to the strength and creativity of its brands and its expansion into new markets, LVMH will continue its growth in 2008 despite the challenging monetary environment and an uncertain economic climate at the beginning of this year. Increasing market share and the profitability of its leading brands as well as improving the results of its developing companies remain LVMH top priorities. All of these elements allow us to confirm the objective of tangible growth in the Group’s results in 2008.
Regulated information related to this press release is available on our internet site www.lvmh.com.