Continued strong growth momentum in third quarter 2007
LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, achieved revenues of EUR 11.4 billion in the first nine months of 2007, reflecting organic growth of 13% compared to the same period in 2006. LVMH recorded accelerated growth in the third quarter compared to the already very favorable trends at the beginning of the year, thanks notably to the continued exceptional performance of Louis Vuitton. Organic revenue growth reached 15% during the period, a development which is even more noteworthy in view of the robust growth achieved in the third quarter of 2006. This performance reflects the exceptional appeal of the LVMH brands and products, which continued to increase their market share, the success of the Group’s strategy and the effectiveness of the teams who succeeded in achieving ever-increasing results.
By business group, the progress was as follows:
|In million euros||First nine months of 2007||First nine months of 2006||Variation 2007/2006 First nine months|
|Wines & Spirits||2 073||1 894||+ 9 %||+ 14 %|
|Fashion & Leather Goods||4 021||3 729||+ 8 %||+ 14 %|
|Perfumes & Cosmetics||1 961||1 807||+ 9 %||+ 12 %|
|Watches & Jewelry||589||509||+ 16 %||+ 22 %|
|Selective Retailing||2 882||2 722||+ 6 %||+ 11 %|
|Other activities and eliminations||(80)||(35)||-||-|
|Total||11 446||10 626||+ 8 %||+ 13 %|
* With a comparable structure and constant exchange rates.
Wines & Spirits business group achieved organic revenue growth of 14% during the first nine months of 2007. Champagne and cognac volumes increased by 8% and 11% over the period respectively, in a context of increased prices and an improvement in product mix, supported by the success of rosé champagnes and Hennessy’s premium qualities. Following the acquisition of the brand in the US, Belvedere vodka resumed its activity in the third quarter. New World Wines saw double-digit revenue growth in all their markets.
Fashion & Leather Goods business group achieved 14% organic revenue growth during the first nine months of the year. Louis Vuitton recorded double-digit organic revenue growth during the period. Business was particularly active in Europe, the US and Asia. In Japan, the favourable trends observed in the second quarter continued throughout the summer. Fendi continued its strong growth, driven by the success of its leather goods lines. The positive momentum of other brands, notably Marc Jacobs, Givenchy and Loewe, was confirmed in the third quarter.
Perfumes & Cosmetics business group recorded organic revenue growth of 12% during the first nine months of the year. Performance was particularly positive in Europe and Asia. Christian Dior launched, with major success, its new perfume Midnight Poison. Guerlain launched L’Instant Magic. The launches of TokyobyKenzo, Palazzo Fendi and Pucci’s Vivara, as well as Benefit’s rapid progress contributed to the growth.
Watches & Jewelry business group saw organic revenue growth of 22% in the first nine months of the year. TAG Heuer registered strong growth thanks to the excellent performance of its Carrera, Aquaracer and Link lines. Zenith made particularly remarkable advances in the Middle East, Russia and the US. Dior continued its progress thanks to the success of Christal, notably in Europe and Asia. Chaumet and De Beers made significant progress.
In Selective Retailing, DFS benefited from the growing number of Asian travelers and saw rapid growth in Hong Kong and Singapore. Sephora continued to win market share in Europe and in the US and to expand its business in the Middle East and China. Its store network has grown at a steady rate.
LVMH relies on the considerable appeal of its products and brands to continue the momentum it has enjoyed since the beginning of the year, in a very well-oriented global economic environment, moderated by the weight of the excessive valuation of the Euro felt by European producers; in this context, LVMH confirms its objective of a significant increase in its results in 2007.
The regulated information linked to this press release is available on the website www.lvmh.fr