Growth looks good for LVMH in the 3rd quarter

Paris (awp / afp) – World leader in luxury goods, LVMH earned 13.3 billion euros in sales in the third quarter thanks to the success of its products in all regions of the world, particularly in Asia "despite a difficult context in Hong Kong ".

Bernard Arnault's group – the first in the CAC 40 to publish its quarterly performance – sees its business grow by 17% in published data, and 11% in organic terms.

Its sales are also well above the consensus established by the agencies Bloomberg and Factset, which forecast respectively 12.6 and 12.7 billion.

"The United States and Europe are enjoying good progress over the quarter, as Asia despite a difficult context in Hong Kong," theater for four months of pro-democracy demonstrations, said Wednesday in its statement the giant with 70 brands ( Louis Vuitton, Fendi, Dior, Givenchy, Guerlain, Hennessy or Sephora).

The former British colony represents a key market for the entire luxury sector: some brands saw their activity slowed down by the closing of sales outlets because of protests, but also by the scarcity of Chinese customers giving up surrendering. in Hong Kong for their purchases.

LVMH is expected to give more details on its financial performance on Thursday afternoon during its conference call.

In the first nine months of the year, the first capitalization of the French stock market totals 38.4 billion euros of sales, more than for the whole year 2017.

By sector of activity, Fashion and Leather Goods – its flagship division – totaled 5.44 billion euros in revenue, an increase of 19% in organic terms.

"Louis Vuitton achieves a remarkable performance in all its professions and in all regions", while Christian Dior "achieves a remarkable progress too," he said.

"vigilance"

Selective Retailing (Sephora, DFS) closed the quarter with a 4% increase in sales to 3.4 billion.

"Sephora is recording steady growth in sales and gaining market share in all key markets and online sales continue to grow at a fast pace," says LVMH.

For its part, DFS (Duty Free Shops) "continues to grow over the first nine months of the year despite the slowdown observed in Hong Kong".

Wines and Spirits saw their activity grow by 8% to 1.4 billion euros, "the increase is strong in China as in the United States under the effect of sustained demand."

As for champagne – LVMH owns the brands Dom Pérignon, Moët and Chandon, Krug, Ruinart and Veuve Clicquot – "volumes are slightly down over the period, prestige wines are growing strongly, while the policy of increasing price continues on the whole range ".

Hennessy cognac, for its part, sees its volumes "increase by 10%, driven by the VS qualities", that is to say spirits of at least two years of age.

Perfumes and Cosmetics made sales of € 1.6 billion (+ 7%), while Watches and Jewelry totaled € 1.1 billion (+ 5%).

LVMH does not give a perspective for the current year, but says that "in a growth environment since the beginning of the year, marked however by an uncertain geopolitical context, it will continue to be vigilant".

He says "count on the dynamism of its brands and the talent of its teams to further strengthen in 2019 its lead in the global luxury market."

afp / rp