France-based luxury goods maker LVMH has reported a rise in sales for the first nine months of the year, underlining a strong performance in every business segment, including perfumes and fragrances.
The results underline the fact that, contrary to the pervading stagnant performance in the global market for mass produced cosmetics and fragrances, the luxury market is continuing to perform well in the face of an uncertain economy.
Group sales for the first nine months of the year were up by a robust 22 per cent on a reported basis, to €19.86bn, which represented organic growth of 10 per cent – a figure that takes into account the consolidation of the newly acquired Bulgari business.
Peformance shows signs of slowing for the third quarter
A closer look at the revenues for the most recent third quarter does however show that the group’s performance has slowed a little in the second half of the year, with revenues up 15 percent on a reported basis to €6.01bn, a rise of 6 per cent in organic terms.
The company said that the result represented a ‘solid’ performance in view of the current economic climate and noted that sales in the US market had ‘continued to demonstrate momentum’.
Likewise, the company also noted that all geographic markets had contributed to the overall rise in revenues, and noted that Asia and Europe had specifically contributed to the increasing revenues reported during the third quarter.
Cosmetic and perfume sales show solid performance
For the first nine months cosmetic and perfume revenues increased by 14 per cent to €2.62bn, which represented an increase of 8 per cent in organic terms, while for the third quarter sales came in at €793m.
The company said that the growth in its cosmetics business was driven by the continued growth of the Christian Dior brand, which was underpinned by the success of the Dior Addict line.
The make-up and skin care segments also contributed to the strong performance from the Prestige range and the new Diorskin Nude products, while Guerlain was boosted by the successful launch of La Petite Robe Noire and a solid performance from Orchidée Impériale skincare products.
Additionally, Givenchy benefitted from an expansion to the make-up range into new markets, while the Benefit range was boosted by the success of the They’re Real mascara range.