LVMH Revenue Rises 25% To EUR6.58 Billion On Strong Luxury Demand
April 18 2012 - 2:30AM
Dow Jones News
French luxury goods giant LVMH Moet Hennessy Louis Vuitton SA
(MC.FR) Wednesday said revenue in the first quarter rose 25% to
EUR6.58 billion, as demand for high-end handbags, expensive spirits
and pricey watches remained strong at the beginning of the
year.
Revenue was slightly higher than an average forecast of EUR6.43
billion in a Dow Jones Newswires analyst poll. LVMH said it will
strengthen its leadership of the luxury industry in 2012 and will
maintain a "strict control over costs."
The company's revenue growth, which came in at 14% on an organic
basis, was further boosted by the acquisition of Italian jeweler
Bulgari and positive currency effects. In LVMH's watches and
jewelry division, sales increased 141% to EUR630 million from a
year earlier.
Revenue at the fashion and leather goods division, home to the
company's famous monogramed handbag brand Louis Vuitton, rose 17%
to EUR2.37 billion.
The wine and spirits division, which includes Cloudy Bay wine
and Moet & Chandon Champagne, posted a 22% increase in revenue
to EUR926 million, compared with a strong performance in the same
period of 2011, when high demand in the U.S. and Asia lifted
sales.
LVMH results came one day after U.K. competitor Burberry Group
PLC (BRBY.LN) reported a 19% rise in its second-half sales. Despite
a solid performance, Burberry's shares fell Tuesday as investors
continued to question the sustainability of the luxury sector's
recent boom.
French rival Gucci parent PPR SA (PPR.FR) will release
first-quarter sales April 25 after market close.
LVMH shares have gained around 16% over the past six months,
outperforming the CAC 40 index, up close to 3% over the same
period.
LVMH shares closed at EUR130.5 on Tuesday.
-By Nadya Masidlover, Dow Jones Newswires; +33 1 4017 1740;
nadya.masidlover@dowjones.com
(Inti Landauro contributed with this article.)
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