LVMH posts strong Q1 growth with cosmetics just off the pace
The global luxury products group recorded revenue of €5.2bn in the first quarter of 2011, an increase of 17 per cent on last year.
Perfume and Cosmetics posted €803m in revenue for the first quarter, a nine per cent increase of €736m last year.
The company highlighted that Christian Dior had an excellent quarter thanks to the sustained growth of its flagship product ranges.
The quarter saw the successful launch of the Dior Addict lipstick and the roll out of a new perfume, Miss Dior, with Natalie Portman as its muse.
Guerlain benefited from the rapid growth of its perfume Shalimar and from its skin care range Orchidée Impériale.
Givenchy’s growth was driven by the success of Play for Her, launched in 2010. Benefit and Make Up For Ever experienced exceptional growth across all markets, according to LVMH.
Double digit growth in other BU’s
Watches and jewelry posted the largest growth with 28 per cent, followed by Wines & Spirits and Selective Retailing (both with 20 per cent) and Fashion & Leather Goods raking in just over €2bn with growth of 17 per cent.
The Group states it had an excellent start to the year, continuing the trends seen at the end of 2010, with the US, Europe and Asia enjoying strong momentum.
In Selective Retailing, cosmetics retailer Sephora continued its solid performance across all its regions. LVMH put this down to its exclusive product offering and innovative services, with Sephora increasing its market share and accelerating the expansion of its networks into markets with strong potential.
Following these results, LVMH says it will continue to focus on the development of its brands, monitor all costs and look to invest based on strong products and channels of distribution.