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LVMH’s Q3 Sales Shrugged Off Hong Kong Turmoil

Luxury conglomerate LVMH Moët Hennessy Louis Vuitton’s revenue rose 17 percent in the third quarter, while organic revenue growth was up 11 percent, despite the ongoing social unrest roiling Hong Kong.

In a Nutshell: “The United States and Europe saw good progress in the third quarter, as did Asia, despite the difficult context in Hong Kong,” LVMH said.

The company said its core Louis Vuitton brand “enjoyed a remarkable performance in all its businesses and in all regions,” citing the success of the Louis Vuitton X exhibition in Los Angeles tracing the history of the Maison. In addition, the company said Louis Vuitton continues to strengthen its production capacity via a new workshop opened in France in September.

Christian Dior’s new Parisian boutique on the Champs-Elysées “has been very well received,” the company said. As for Loro Piana, Loewe and Rimowa, those brands “enjoyed good progress” while its other fashion houses continued to “strengthen.”

In selective retailing, which includes its DFS stores that cater to tourists, the company said it saw continued growth, despite the slowdown in Hong Kong.

As it looks ahead to the fourth quarter, the company said, “LVMH will rely on the power of its brands and the talent of its teams to further extend its global leadership in the luxury market in 2019.”

Net Sales: Total revenues for third quarter ended Sept. 30 were up 17 percent to 13.32 billion euros ($14.62 billion) from 11.38 billion euros ($12.49 billion), with organic growth for all segments up 11 percent in the quarter.

By segment, revenues for fashion and leather goods rose 22.2 percent to 5.45 billion euros ($5.98 billion) from 4.46 billion euros ($4.89 billion), while organic growth in the category was up 19 percent. Revenues in selective retailing was up 7.5 percent to 3.46 billion euros ($3.80 billion) from 3.22 billion euros ($3.53 billion), with organic growth in the category up 4 percent.

CEO’s Take: The company said, “In a growth environment since the beginning of the year, albeit marked by an uncertain geopolitical context, LVMH will continue to be vigilant. The Group will pursue its strategy focused on innovation and targeted geographic expansion in the most promising markets.”