LVMH results show luxury is still the flavour of the month
the biggest sales growth in the industry, as the latest quarterly
results from France-based LVMH Moet Hennessy Louis Vuitton reveal.
The leading luxury products group, achieved revenue of €3.6 billion euros in the first quarter, representing growth of 15 per cent over the same period last year. A particularly strong performance given that in the comparative period, and subsequent quarters, revenue has also seen double-digit growth.
Once again the company's cosmetics and fragrance division put in a particularly strong performance, with revenues growing 18 per cent, from €507m in the first quarter last year, to reach €597m this year. This figure represented organic growth of 14 per cent for the division.
For the full business year in 2005, the company reported that the cosmetics and fragrance division sales grew 15 per cent to reach €173m, up from €150m, with the most recent figures indicating that sales are growing stronger still.
In particular the company reported that Parfums Christian Dior increased its momentum around the world, notably due to the extraordinary success of the Capture Totale skincare range and its make-up lines.
Also in the skin care area, Guerlain benefited from what the company termed the 'excellent' launch of its new Orchidee Imperiale skincare product and further progress was seen with the KissKiss make-up range, while BeneFit Cosmetics also recorded double digit growth
In perfumes, the company said that existing products continue to grow well and contributed to the strong revenue growth. Revenue of Parfums Givenchy was driven by 'vintage' expressions of its Organza, Amarige and Very Irresistible lines.
The company said that on a geographic basis it has been the Asian and the US market where sales growth has been most impressive, and particularly noted the performance of the Japanese market, where a strong recovery is continuing to take place.
All of the company's business division reported double-digit sales growth for the most recent quarter, but the strongest performance came from the wines and spirits as well as the watches and jewellry divisions, which both recorded sales growth in excess of 20 per cent.
Sephora, the company's fragrance and cosmetic retail chain, continued its strong momentum around the world, in particular in France where LVMH said that it continued to grow market share. In the US, Sephora once again achieved double-digit revenue growth on a same store basis.
Looking to the rest of the year the company said that it would be continuing to pursue further growth by pursuing a combined strategy of new product launches and the continued penetration of new markets.