LVMH reports continued growth, despite a tough European market

By Simon Pitman

- Last updated on GMT

Related tags: Skin care, Lvmh

Luxury French brand Louis Vuitton Moët Hennessy has announced continued growth for both its perfume and cosmetic ranges during the first quarter, with European sales still climbing despite the tough economic conditions.

The company has been expanding its reach in the sector through further launches in the skin care and make-up categories, reported even stronger growth for each of its other five business divisions.

Overall sales for the quarter grew by 25 percent on a reported basis to reach €6.58bn, which represented an increase of 14 per cent in organic terms, which took into consideration negative currency translations.

Revenue growth very strong in the US and Asia

In particular the revenue growth was driven by strong sales in both the United States and Asia, while the company reported that it saw ‘very good progress’ for sales in Europe, despite the challenging economic environment.

“In an economic environment which remains uncertain in Europe, LVMH will continue to focus its efforts on developing its brands, will maintain a strict control over costs and will target its investments on the quality, the excellence and the innovation of its products and their distribution,”​ the company said in a statement.

Perfume and cosmetic sales grew by 12 per cent on a reported basis, up from €803m to €899m, a figure that represented an increase of 9 per cent in organic terms.

The company said that growth in the division was driven by continued acceleration of its Christian Dior fragrances, while skin care and make-up was driven by the Dior Prestige and Dior Addict lines. The new skin care range Orchidée Impériale continued to perform well worldwide.

The company also described sales growth for the Benefit and Make Up For Ever ranges as being ‘remarkable’.

Perfume and cosmetics sales growth not as big as other divisions

However, revenue growth for the perfume and cosmetics division paled compared to the other divisions, despite the fact that this represents an industry leading pace.

Growth in other divisions was led by the selective retailing division, which recorded a 28 per cent growth during the quarter to €1.82bn, a figure that was driven by the continued expansion of the Sephora cosmetics and perfume store network, worldwide.

Related topics: Business & Financial

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