Popular brand credibility boosts LVMH sales

By Simon Pitman

- Last updated on GMT

Related tags: Lvmh

A continued and growing recognition of the LVMH Moët Hennessy Louis
Vuitton brands has helped the group to put in another strong
quarter, with sales of its major French cosmetic and fragrance
brands also making a mark.

LVMH, which describes itself as the world's leading luxury products group, said that it achieved revenues of €10.6 billion in the first nine months of 2006, reflecting both organic and reported growth of 11 per cent compared to the same period in 2005.

The company says that the results show its continued growth in the third quarter, ending 30 September, claiming that this is even more noteworthy considering the exemplary growth it experienced during the course of 2005 and more specifically in the corresponding third quarter.

"This performance reflects the exceptional appeal of LVMH brands and products, which continued to increase their market share and the success of the group's strategy,"​ a company spokesperson said.

The group is currently divided into six divisions, with each having extensive global market reach. It markets some of the best known luxury brands in the global retail market and has built up its perfumes and cosmetics division to be the fourth biggest category.

During the first nine months of the year total cosmetic and fragrance sales accounted for €1.80bn of the total $10.62bn sales. The biggest growth margin came from the company's smallest division - watches and jewelry - which grew by 22 per cent to reach €489m.

Sales of fragrances for the first nine months of the financial year were driven by the launches of Insolence by Guerlain, Ange ou Demon, by Givency and KenzoAmour by Parfums Kenzo have made a particular mark in the third quarter, whilst on the cosmetics front the new lipstick Rouge Dior was said to have been a 'great success'.

In Perfumes & Cosmetics, revenue for the major French brands increased notably. For perfumes, the launches of Insolence by Guerlain, of Ange ou Démon by Givenchy and of KenzoAmour by Parfums Kenzo have been the highlight of the third quarter. In make-up, the new lipstick Rouge Dior is a great success.

Meanwhile, on the retail front, the company said that Sephora, its global fragrance and cosmetic retail arm, had continued to build strong momentum in Europe as well as in the US. Sephora is also expanding in China, where there are new additions planned to the current eight store count.

Looking ahead to the full year results, the company believes that the strength of its brands and products will continue in what it described as a 'well-orientated economic environment', leading it to conclude that a very significant increase for the year-end, which will also include the all-important holiday season.

Related topics: Color Cosmetics, Fragrance

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