Organic revenue growth of 13% in the first quarter
LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of €4.5 billion in the first quarter of 2010. Organic growth* stood at 13% compared to the same period in 2009. The Group continues to perform well in Asia and has seen a strong rebound in the United States and Europe.
All of the business groups recorded double-digit organic revenue growth. Wines & Spirits and Watches & Jewelry both benefited from the end of destocking by distributors seen throughout 2009 and from a recovery in final consumer demand. Louis Vuitton registered double-digit organic revenue growth, a performance which is even more remarkable when compared to the first quarter of 2009 which itself had shown strong growth.
By business group, progress was as follows:
| In million euros | Q1 2010 | Q1 2009 | % change Q1 2010 / Q1 2009 | ||
|---|---|---|---|---|---|
| Reported | Organic* | ||||
| Wines & Spirits | 635 | 540 | + 18 % | + 20 % | |
| Fashion & Leather Goods | 1 729 | 1 598 | + 8 % | + 10 % | |
| Perfumes & Cosmetics | 736 | 663 | + 11 % | + 12 % | |
| Watches & Jewelry | 204 | 154 | + 33 % | + 34 % | |
| Selective Retailing | 1 181 | 1 085 | + 9 % | + 13 % | |
| Other activities and eliminations | (13) | (22) | - | - | |
| Total | 4 472 | 4 018 | + 11 % | + 13 % | |
* With a comparable structure and at constant exchange rates.
The Wines & Spirits business group saw a revival in the first quarter with a significant increase in volumes resulting in organic revenue growth of 20%. Following a year negatively affected by high levels of destocking, in the first quarter, the champagne business benefited from a renewal in orders from distributors. Hennessy cognac confirmed its good momentum in all regions and benefited in particular from the solid demand in Asia throughout the key Chinese New Year period.
Fashion & Leather Goods registered organic revenue growth of 10% in the first quarter of 2010. Louis Vuitton continues to deliver an exceptional performance, sustained worldwide by the growth of its historic lines and by the success of its latest innovations. The strength of its continually renewed creations is greeted by all clientele in Europe, the US and Asia. The opening of a Louis Vuitton Maison in Kobe, Japan, was one of the highlights of the quarter. Fendi had a very good start to the year thanks to growth at its stores.
In Perfumes & Cosmetics, organic revenue growth stood at 12% in the first quarter of 2010. Christian Dior benefited from the strong dynamic of its perfumes with, in particular, the growth of Fahrenheit and of Miss Dior Chérie. A new skincare product, Capture Totale One Essential, had an immense success, while the new mascara, DiorShow Extase is having a very promising start. Guerlain successfully rolled out its new Idylle perfume and Givenchy saw strong growth thanks to the progress of its Play line. Benefit and Make Up For Ever continued their international development.
The Watches & Jewelry business group recorded organic revenue growth of 34% in the first quarter of 2010 helped by the reconstitution of stocks by watch retailers and a strong demand for our brands. The success of the new products presented at the Basel Watch Fair this year confirmed the momentum of LVMH brands. TAG Heuer continued its high end strategy illustrated by the success of the new Calibre 1887 movement. Hublot showed strong growth with its new King Power collection. On the occasion of its 230th anniversary, Chaumet presented its new jewelry collection, Joséphine.
In Selective Distribution, organic revenue growth stood at 13% in the first quarter of 2010. DFS continued its momentum, supported by the rebound in international travel, from which the Hong Kong, Macao and Singapore Gallerias have particularly benefited. Sephora continued to win market share in all regions. Its increasingly exclusive and innovative product mix contributed to the strengthening of Sephora’s unique positioning. The brand continues the targeted expansion of its retail network and will open its 1000th store worldwide in the second quarter.
Taking into account the uncertainty of the strength of the economic recovery, LVMH will continue to concentrate all of its efforts on the development of its formidable brands while maintaining strict cost management and selective investments. The Group will rely on the strength of its brands, the responsiveness of its organization, the diversification of its businesses and the good geographical balance of its revenue to increase, once again in 2010, its leadership of the global luxury industry.
Regulated information related to this press release is available on the internet site www.lvmh.com.
