MC Lvmh Moet Hennessy Louis Vuitton SE

Gain of 4% is propelled by perfume business and the Asian market; core fashion unit lags

By Manuela Mesco 

French luxury giant LVMH Moët Hennessy Louis Vuitton SE said its nine-month revenue rose 4% from a year earlier, boosted by the Asian market and its perfume business, despite flagging sales at its core fashion unit.

Sales growth, however, was slower than in the year-earlier period. During the first nine months of 2015, LVMH's revenue grew 18%

The company, a bellwether for the industry and the first European luxury house to release its earnings this season, said Monday that its revenue totaled EUR26.3 billion ($29.3 billion) in the first nine months of the year.

LVMH's fashion and luxury-goods division -- its largest unit, which includes such brands as Celine and Marc Jacobs -- grew only 1% over the period to EUR9 billion.

Revenue at LVMH's wines and spirits business, including its Moet & Chandon unit, grew 5% to EUR3.3 billion.

Perfumes and cosmetics were the strongest division in the period, growing 6% from a year earlier, the company said. Louis Vuitton, its flagship brand, launched a new perfume.

Sales in Asia, excluding Japan, showed a significant improvement during the third quarter, LVMH said. The company added that the wines and spirits division improved its results in China.

LVMH doesn't report quarterly profit figures. As a result, investors will have to await full-year results to see what impact the slowdown has had on profitability, given that many luxury-goods companies are sinking more money into their retail networks and digital channels to combat an industry slowdown.

While LVMH said that sales growth picked up over the course of this year, the company is growing far more slowly than last year.

LVMH's slowdown reflects a shift in the global luxury market. Weakening luxury-goods sales in China -- whose shoppers represent one third of the luxury market, according to advisory firm EY -- changes in customers' tastes and volatile currency and macroeconomic conditions have erased the double-digit growth rates many luxury-goods houses enjoyed until recently.

LVMH's sales growth began to slow in 2013, prompting it to refresh key brands such as Louis Vuitton, the conglomerate's profit and sales powerhouse.

Other brands such as Kering and Prada have also had similar slowdowns.

The company offered a positive outlook Monday for its U.S. and European markets, with the exception of France, which continues to suffer a decline in tourism after recent terror attacks.

LVMH also said the company will pursue "targeted geographic expansion" in certain markets.

Write to Manuela Mesco at manuela.mesco@wsj.com

(END) Dow Jones Newswires

October 11, 2016 02:48 ET (06:48 GMT)

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