Led by its Fashion and Leather Goods business group, LVMH Moët Hennessy Louis Vuitton saw its revenue jump double digits in the first quarter.
The luxury leader reported a 10 percent revenue increase to 10.85 billion euros ($13.37 billion) for the first quarter compared to the same period a year earlier. Organic growth, which includes exchange rate and structural impacts, was 13 percent compared to the same period in 2017, with contributions from all business groups and solid growth in Asia, the U.S. and Europe.
“In the buoyant environment of the beginning of this year, albeit marked by unfavorable exchange rates and geopolitical uncertainties, LVMH will continue to focus its efforts on developing its brands, maintaining strict control over costs and targeting its investments on the quality, excellence and innovation of its products and their distribution,” the Paris-based luxury group noted.
LVMH said it will rely on the diversification of its businesses and the geographical balance of its revenue to reinforce its position in luxury goods.
Revenue at the Fashion & Leather Goods group rose 25 percent to 4.27 billion euros ($5.26 billion) on a reported basis, and grew 16 percent on an organic basis in the first quarter, driven by Louis Vuitton, which the company said “made a remarkable start to the year.” Virgil Abloh was named Men’s artistic director for the brand during the quarter.
Christian Dior Couture, which was consolidated into the group in July, turned in what the company described as an “excellent performance,” with Kim Jones appointed as artistic director of Dior Homme during the period.
Fendi and Loro Piana grew rapidly in the ready-to-wear and shoes sector, LVMH noted, and Hedi Slimane has joined Céline as artistic, creative and image director.
In the Selective Retailing segment, revenue fell 2 percent to 3.1 billion euros ($3.82 billion), with organic revenue rising 9 percent in the quarter, or 16 percent excluding the termination of the Hong Kong International Airport concession.
Online sales grew rapidly all over the world, according to LVMH. With recently opened duty free stores in Cambodia and Italy showing strong performance, the company said its DFS division “enjoyed an excellent start to the year, performing particularly well in the T Gallerias in Hong Kong and Macao.”
In Perfumes & Cosmetics, organic revenue increased 17 percent in the first quarter, while the Watches & Jewelry business group recorded 20 percent organic revenue growth and Wines & Spirits posted 10 percent organic revenue growth in the quarter.