DFS profits from rapid growth of Asian tourism

Nicole Mezzasalma

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LVMH’s Selective Retailing division, which includes duty-free operator DFS Group, recorded organic revenue growth of 18% in the first quarter of 2012

Luxury goods giant LVMH Moët Hennessy–Louis Vuitton reported revenue increase of 25% to €6.6bn ($8.6bn) in the first quarter of 2012 against the previous corresponding period. The company said organic revenue growth was 14% and that it “continued its excellent momentum at the start of the year”, with particularly fast growth in Asia and the US and good progress in Europe “despite the contrasting environment”.

The Selective Retailing division, which includes duty-free operator DFS Group, recorded revenue growth of 28% to €1.82bn ($2.39bn) over the quarter, with organic growth of 18% in the period. According to the company, DFS “continued to profit from the rapid growth in Asian tourism, which particularly benefitted the Gallerias in Hong Kong and Macau”.

Among the other business divisions, Watches & Jewelry continued its rapid growth, with organic revenue up of 17% in the quarter. In Fashion and Leathergoods, Louis Vuitton “continued its double-digit growth thanks to sustained demand across all of its product categories”, while the other brands also recorded rapid expansion.

The company added in a statement: “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 Group will rely on the talent and motivation of its teams, the diversification of its businesses and the good geographical balance of its revenues to increase, once again in 2012, its leadership of the global high-quality products market.”