LVMH Revenue Rises 16%
October 12 2015 - 1:40PM
Dow Jones News
By Jason Chow)
PARIS-- LVMH Moët Hennessy Louis Vuitton SE said Monday its
third-quarter revenue rose 16% as the French luxury goods company
benefited from a weak euro, and strong sales at its wine and
spirits division outweighed slowing growth at its fashion
business.
LVMH posted revenue of EUR8.58 billion ($9.75 billion), led by
what it called a "notable acceleration" in its liquor business,
which includes Moët Champagne and Hennessy cognac. That division
posted a 26% increase to EUR1.2 billion in the three-month period
ending September.
LVMH said Hennessy cognac volumes increased 12% in the third
quarter due to a "strong rebound" in demand in China and "continued
excellent momentum" in the U.S.
The company's overall organic revenue growth, which strips out
the effects of currency, came in at 7%. Organic growth at the wine
and spirits division was 16%. LVMH doesn't publish quarterly profit
figures.
The large gap between organic and overall growth highlights how
the low euro has boosted Europe's luxury industry. The currency
means overseas sales translate to even more when converted back to
euros, while currency volatility drives Chinese shoppers to Western
Europe and Japan as prices for handbags and other items are
significantly higher in their home countries owing to taxes and
exchange rates. Other luxury firms, including Hermès International
SCA and Gucci owner Kering SA, have been reported similar phenomena
throughout this year.
However, the company's fashion and luxury goods division, which
includes the flagship Louis Vuitton brand, showed just 3% organic
growth to EUR2.94 billion, a decline from 5% over the first half of
the year. Still, the company said "Louis Vuitton continued its
growth," noting "great success" with its monogram line, a
turnaround from two years ago when the logo-driven products fell
out of favor with fashion-conscious consumers.
The company will hold a conference call on Tuesday afternoon to
discuss the results.
Write to Jason Chow at Jason.Chow@wsj.com
(END) Dow Jones Newswires
October 12, 2015 13:25 ET (17:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
Lvmh Moet Hennessy Louis... (EU:MC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Lvmh Moet Hennessy Louis... (EU:MC)
Historical Stock Chart
From Apr 2023 to Apr 2024
