Strong revenue growth in the first quarter of 2007
LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury group, achieved revenue of 3.8 billion euros in the first quarter of 2007. Organic* revenue increased by 13% compared to the same period in 2006, which also enjoyed strong growth.
All business groups recorded double-digit organic revenue growth in the period. The US, Asia and Europe performed particularly well due to continued high demand from both local clients and tourists.
By business group, the progress was as follows:
|In million euros||Q1 2007||Q1 2006||Variation 1er trim. 2007 / 1er trim. 2006|
|Wines & Spirits||689||632||+ 9 %||+ 15 %|
|Fashion & Leather Goods||1 347||1 296||+ 4 %||+ 10 %|
|Perfumes & Cosmetics||663||597||+ 11 %||+ 15 %|
|Watches & Jewelry||189||157||+ 20 %||+ 27 %|
|Selective Retailing||941||895||+ 5 %||+ 11 %|
|Other activities and eliminations||(25)||(22)||-||-|
|Total||3 804||3 555||+ 7 %||+ 13 %|
* With a comparable structure and at constant exchange rates.
Wines & Spirits saw organic revenue growth of 15% in the first quarter of 2007. The champagne division, where volumes increased by 8%, had a good start to the year, particularly Moët & Chandon in Europe and Veuve Clicquot in Japan. The rosé champagnes have made remarkable progress, most notably in the US. Hennessy cognac confirmed its strong momentum with volumes up by 18% and the higher quality ranges recording the strongest growth. Its fast development in China and Russia continues.
Fashion & Leather Goods recorded 10% organic revenue growth in the first quarter of 2007. Louis Vuitton achieved an exceptional performance with double-digit organic growth in all regions except Japan. The beginning of the year has seen numerous innovations in leather. The new Damier Azur line has also been exceptionally popular. Fendi continued its growth in the first quarter, helped by the success of a new leather line and the sustained progress of its shoe and ready-to-wear lines. The business group’s other brands, in particular Marc Jacobs, enjoyed an excellent first quarter.
In Perfumes & Cosmetics, organic revenue growth reached 15% in the first quarter, much better than the performance of the industry overall. The continued success of J’adore and Miss Dior Chérie and the promising launch of the new male fragrance, Fahrenheit 32, have enhanced Parfums Christian Dior’s strong growth. The brand also benefited from the continued progress of the Rouge Dior lipstick and Capture skincare. Guerlain was lifted by the success of Insolence and the strong performance of its Terracotta makeup line. Parfums Givenchy revenue increased, notably thanks to the success of Ange ou Démon. The relaunch of Eaux par Kenzo and the roll-out of KenzoAmour were the principal drivers of Parfums Kenzo’s growth.
In the first quarter of 2007, the Watches & Jewelry business group recorded organic revenue growth of 27%, considerably higher than that of the sector. TAG Heuer performed exceptionally well in all regions. Zenith and Montres Dior also saw strong growth notably thanks to their respective lines Defy and Christal. Chaumet benefited from the success of its jewelry collection Attrape-moi and its Dandy watches. The new products launched by our brands at the international Basel Watch Fair have been very well-received: TAG Heuer’s new watch movement Calibre S as well as an upgrading of its iconic lines, Zenith’s strengthening of its Defy line, and Montres Dior’s Christal jewelry supported by Sharon Stone as the face of its new advertising campaign.
In Selective Retailing, DFS continued to benefit from the rapid development of Chinese tourism, although Japanese tourist spending was limited by the weakness of the yen. Sephora maintained strong growth in all of its markets. The brand continued to win market share in France and the US thanks to its culture of product and service innovations. New stores were opened in the Middle East and in Central Europe.
Thanks to the strength and creativity of its brands and its expansion into new markets, LVMH will continue its growth in 2007 despite the difficult monetary environment at the beginning of the year. Increasing market share and the profitability of its leading brands as well as improving the results of its developing companies remain LVMH’s top priorities. All of these elements allow us to confirm the objective of significant growth in the Group’s results in 2007.