Yen rise against dollar boosts DFS

LVMH Moet Hennessy-Louis Vuitton has revealed that DFS Group’s results in the first quarter of 2008 were boosted by strong spending from Chinese travellers and a resurgence of sales to Japanese passengers as tourism grew and the Yen strengthened against the dollar. LVMH’s Selective Retailing division, which includes DFS and US beauty chain Sephora, posted organic growth of 15%, with sales rising to €1.01bn ($1.6bn).

The company said of the retailer’s performance: “DFS continued to benefit from the development in Asia of Chinese tourism and recorded consistent revenue growth.  The increase in Japanese tourist spending supported by a stronger yen compared to the dollar also contributed to this good performance.”

Selective Retailing registered the second strongest performance of all LVMH’s divisions, with Watches & Jewelry taking the top spot with organic growth of 19% and sales of €211m ($333m). Fashion & Leather Goods grew by 14%, Perfumes & Cosmetics by 13% and Wines & Spirits by 1%.

The company said in a statement: “LVMH will continue its growth in 2008 despite the challenging monetary environment and an uncertain economic climate at the beginning of this year. Increasing market share and the profitability of its leading brands as well as improving the results of its developing companies remain LVMH top priorities.”