LVMH: 22% increase in revenue for the first nine months of 2012

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LVMH Moët Hennessy Louis Vuitton, the world’s leading high quality products group, recorded revenue of €19.9 billion for the first nine months of 2012, an increase of 22% on the comparable period in 2011. After taking into account the consolidation of Bulgari, as of 30 June 2011, and a positive currency impact, organic revenue grew by 10%.

The Group recorded a 15% rise in revenue for the third quarter. Organic revenue growth was 6%, a solid result in the current economic environment, particularly when compared to the strong performance in the same period of 2011. The US market continued to demonstrate momentum. In spite of a challenging economic environment, Europe and Asia also contributed to the third quarter performance. Louis Vuitton continues to gain market share throughout the world.

Revenue by business group:

Euro millions 9 months 2012 9 months 2011 Change 2012/2011 first 9 months
Reported Organic**
Wines & Spirits 2 765 2 306 + 20 % + 12 %
Fashion & Leather Goods 7 179 6 189 + 16 % + 8 %
Perfumes & Cosmetics 2 625 2 311 + 14 % + 8 %
Watches & Jewelry 2 033 1 212 + 68 % + 7 %
Selective Retailing 5 452 4 378 + 25 % + 14 %
Other activities and eliminations (188) (93) ns ns

* with comparable structure and constant exchange rates.

The Wines & Spirits business group recorded organic revenue growth of 12% for the first nine months of 2012. The Group’s champagne brands achieved a sustained increase in volume over the period. An improvement in product mix and the price increases announced at the start of the year also contributed to the progress made by the Champagne business. All geographic regions recorded increases with particularly strong advances in emerging markets. The Wine business benefitted from the rapid development of sparkling wines. Hennessy cognac continued to see strong momentum across all categories.

The Fashion & Leather Goods business group recorded organic revenue growth of 8% for the first nine months of the year. Louis Vuitton reported a double-digit rise in revenue, driven by the powerful appeal of its products and the unique experience offered to all clients at its stores, and further reinforcing its advance on the global market. The Shanghai opening of the first Maison Louis Vuitton in China and the launch of a number of collections in collaboration with the artist Yayoi Kusama marked some of the high points of the quarter. Celine achieved remarkably strong performance across all its markets and product ranges. Fendi undertook a targeted expansion of its distribution network. All other fashion brands continued to show improved performance.

The Perfumes & Cosmetics business group registered organic revenue growth of 8% for the first nine months of 2012. Christian Dior continued to show strong momentum underpinned by the growth of its iconic perfumes and the relaunch of Dior Addict, backed by a new publicity campaign. The makeup and skincare segments also contributed to the strong performance thanks to the Prestige range and the new Diorskin Nude products. Guerlain benefitted from the successful launch of La Petite Robe Noire and solid progress with its Orchidée Impériale skincare products. Givenchy benefitted from broadened distribution of its makeup range. Benefit continues to achieve strong growth thanks to its They’re Real mascara. Fresh opened its first store in the Chinese market.

The Watches & Jewelry business group recorded organic revenue growth of 7% for the first nine months of 2012. LVMH’s watch brands made further progress driven by their iconic ranges and innovation. The launch of TAG Heuer’s new Link Lady and Zenith’s Pilot range were among the highlights for the quarter. In Jewelry, the success of Bulgari’s Serpenti and B.Zero1 collections was confirmed as the brand pursued a very selective distribution strategy. Chaumet and Fred delivered good performance in their own boutiques.

The Selective Retailing business group achieved organic revenue growth of 14% for the first nine months of 2012. DFS continued to expand its presence in Hong Kong with the opening of its third Galleria in the city centre and establishing three new concessions at the airport which will be operational at the year-end. Sephora produced a remarkably strong performance, winning market share across all regions of the world. Its growth momentum remains strong with, notably, significant progress being made in China and Russia and the considerable success of its first store opening in Brazil. On-line sales in France and the United States saw particularly strong gains.


Despite the background of an economic slowdown in Europe, LVMH remains confident in its outlook for 2012. The Group will continue to pursue its proactive strategy centered on innovation and targeted geographic expansion in the most promising markets. LVMH will rely on the power of its brands and the talent of its teams to further extend, in 2012, its global leadership position in luxury products.

During the quarter and to date, no events or changes have occurred which could significantly modify the Group’s financial structure.
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Appendix – Revenue by business group and by quarter

9 months 2012

Euro millions Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities and eliminations Total
First quarter 926 2 374 899 630 1 823 (70) 6 582
Second quarter 833 2 282 828 713 1 767 (39) 6 384
Third quarter 1 006 2 523 898 690 1 862 (79) 6 900

9 months 2011

Euro millions Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities and eliminations Total
First quarter 762 2 029 803 261 1 421 (29) 5 247
Second quarter 673 1 942 715 315 1 410 (10) 5 045
Third quarter 871 2 218 793 636 1 547 (54) 6 011