LVMH believes growth will continue despite current crisis
Like many luxury players, the France-based group is keen to reassure shareholders that all is well within the sector during uncertain times.
Revenue growth in first nine months
The group has reported organic revenue growth for the nine months ending 30 September of 10 per cent, however accounting for the effect of unfavourable exchanges rates this figure is 4.5 per cent.
Revenue for the nine month period stood at €12bn.
Perfumes and Cosmetics performed well, with sales for the first nine months of 2008 coming in at nearly 2.1bn, a 6 per cent increase on last year’s figure (11 per cent if comparable exchange rates are used).
Geographically, Asia was the jewel in the crown for this sector reporting 25 per cent sales growth in local currency.
The US was next in line reporting 16 per cent growth, again if calculated in dollars, and Europe and Japan followed with mid single digit growth.
LVMH highlighted Parfums Christian Dior as a particularly strong performer and noted the successful launch of the new male perfume Dior Homme Sport.
Similarly, it was the Asian market, and in particular China, that contributed much to the success of the Christian Dior range.
Sephora expands into new regions
Within the retail sector, Sephora has continued to rapidly expand and according to the company 92 new stores have been opened since the beginning of 2008.
In addition, the first stores to grace the Netherlands, Hong Kong and Kuwait were all opened in the third quarter of this year.
Looking to the future, LVMH predicts it will be able to continue at the current momentum until the end of 2008, stating that it is the ‘considerable appeal’ of its products and brands that will see it through the ‘current global economic and financial crisis’.