LVMH revenues up by 8% as DFS benefits from increase in Asian travellers

Andrew Pentol

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LVMH Moët Hennessy-Louis Vuitton continues strong momentum in the third quarter as DFS Group enjoys rapid growth in Hong Kong and Singapore

LVMH Moët Hennessy-Louis Vuitton has reported strong year-on-year growth for the first nine months of 2007 with reported revenues up 8% to €11.44bn ($16.28bn).

Selective Retailing enjoyed reported growth of 6% to €2.88bn ($4.09bn) with DFS Group benefiting from a growing number of Asian travellers and rapid growth in Hong Kong and Singapore. Sephora continued to win market share in Europe and the US and expand its business in the Middle East and China.

The jewellery and watches category witnessed growth of 16% to €589m ($838m) and Tag Heuer performed strongly due to the success of its Carrera, Aquaracer and Link lines, while Zenith made advances in the Middle East, Russia and the US. Dior continued its progress due to the popularity of Christal in Europe and Asia.

Fragrances and cosmetics grew by 9% to €1.96bn ($2.78bn) as a result of positive performances in Europe and Asia. The successful fragrance launches of Christian Dior’s new Midnight Poison and Guerlain’s L’Instant Magic contributed to the growth.

Reported revenues in the wines and spirits category were up by 9% to €2.07bn ($2.94bn) driven by champagne and cognac divisions where volumes increased by 8% and 11% respectively in the third quarter. New World Wines saw double-digit growth in all its markets.

Fashion and leathergoods registered reported growth of 8% to €4.02bn ($5.72bn) and business was particularly active in Europe and the US, with several brands including Marc Jacobs, Givenchy and Loewe singled out for praise by the company.

The company forecasted continued growth for the rest of the year with “LMVH relying on the considerable appeal of its products and brands to continue the momentum in a very well-orientated global economic environment, moderated by the weight of the excessive valuation of the Euro felt by European producers.”