LVMH revenues up 13% as DFS benefits from Chinese tourism

Tina Milton

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LVMH Moët Hennessy Louis Vuitton reports organic revenue up 13% in the first quarter as DFS Group benefits from rapid development of Chinese tourism

LVMH Moët Hennessy Louis Vuitton has reported strong growth for the first quarter of 2007 compared to the same period last year,  as organic revenue was up 13% to €3.8bn ($5.17bn).

Selective Retailing enjoyed organic growth of 11% to €941m ($1.28bn) buoyed by the rapid development of Chinese tourism,  although the company stated, “Japanese tourist spending was limited by the weakness of the yen”. Sephora maintained strong growth in all of its markets and continued to win market share in France and the US thanks to product and service innovation.

The jewellery and watches category experienced the biggest growth as organic revenue increased 27% to €189m ($257m). Tag Heuer was cited as a strong performer as were Zenith and Montres Dior.

Fragrances and cosmetics grew by 15% to €663m ($902m), a performance which the group described as “much better than the category overall”.  The company praised J’adore, Miss Dior Chérie and new men’s fragrance Fahrenheit 32 for enhancing Christian Dior’s growth. Guerlain was boosted by the success of Insolence and its Terracotta cosmetics line. The relaunch of Eaux par Kenzo and the roll out of KenzoAmour were key for Kenzo.

Organic revenues in the wine and spirits category were also up by 15% to €689m ($938) bolstered by the champagne division where volumes increased by 8% in the first quarter.

Fashion and leathergoods recorded organic revenue growth of 10% to €1.35bn ($1.83bn) and Louis Vuitton was singled out for praise due to its “exceptional performance” in all regions except Japan.

The company forecasted continued growth in 2007 despite the “difficult monetary environment at the beginning of the year”.