12% organic revenue growth in the first nine months of 2017

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LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded a 14% increase in revenue, reaching €30.1 billion, for the first nine months of 2017. Organic revenue grew 12% compared to the same period in 2016.

With organic revenue growth of 12%, the third quarter continues the trend recorded in the first part of the year. Revenue increased by 14%, including a negative currency impact of 5% and a positive structural impact of 7%, reflecting notably the integration of Christian Dior Couture. All business groups recorded double-digit organic growth, with the exception of Wines and Spirits, whose progress was limited by supply constraints.

Revenue by business group:

* With comparable structure and constant exchange rates. The exchange rate impact was -1% and the structural impact was +3%. 

The Wines & Spirits business group recorded organic revenue growth of 8% in the first nine months of 2017. Champagne volumes were up 4%, with particularly strong demand in Europe and Japan. Hennessy cognac has been performing well since the beginning of the year. The volume increase was 9% for the first nine months of 2017, despite a third quarter decline related to supply constraints. Higher qualities progressed well.

The Fashion & Leather Goods business group recorded organic revenue growth of 14% for the first nine months of 2017. Louis Vuitton is still driven by its exceptional strength in the field of innovation, illustrated by its first smart watch and the many creations across all of its activities. The qualitative development of its distribution network continues, as illustrated by the opening of the Maison Louis Vuitton Vendôme in Paris, which brings together under one roof all the savoir-faire of the Maison. Christian Dior Couture, whose business is consolidated for the first time in the third quarter, achieved an excellent performance. A retrospective at the Museum of Decorative Arts in Paris, which has had tremendous success, celebrates the 70th anniversary of the Maison. Fendi is stepping up its development in the United States with the opening of several new stores. Loro Piana, Céline and Loewe are making good progress. Rimowa has been consolidated since January 2017 while Donna Karan was sold at the end of 2016.

The Perfumes & Cosmetics business group recorded organic revenue growth of 14% for the first nine months of 2017. Parfums Christian Dior continued its strong performance. Perfumes benefited from the continued success of J’adore, Sauvage, and from the launch of the eau de parfum Miss Dior. In makeup, the range of Rouge Dior lipstick grew rapidly. Guerlain rolled out its new Mon Guerlain fragrance internationally. Parfums Givenchy continued its strong expansion, driven by makeup. Fenty Beauty by Rihanna, distributed exclusively at Sephora, experienced an exceptional start.

The Watches & Jewelry business group recorded organic revenue growth of 13% for the first nine months of 2017. Bvlgari achieved a remarkable performance thanks in particular to the rapid growth of its signature jewelry collections Serpenti, Diva and B.Zero1. The launch of the new Festa high-end jewelry line was one of the highlights of the last quarter. Chaumet and Fred also contributed to the overall positive performance. In watches, TAG Heuer and Hublot continue to grow. The new products launched at the Basel trade show have had excellent results.

The Selective Retailing business group recorded organic revenue growth of 12% for the first nine months of 2017. Sephora continues to renovate its stores and expand its store network. After France, Sephora launched its new store concept in Spain with two new innovatively designed flagship stores, placing digital at the heart of the customer experience. Online sales are growing at a steady pace. DFS is experiencing sustained growth, particularly in Hong Kong and Macao. The T Galleria stores in Cambodia and Venice have developed well.

Outlook

In an uncertain geopolitical and currency environment, LVMH will continue to be vigilant. The Group will pursue its strategy focused on innovation and targeted geographic expansion in the most promising markets. 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 2017.

Except for the acquisition of Christian Dior Couture in July 2017, details of which are set out on page 52 of the 2017 Interim Financial Report, no material event or change took place during the quarter or to-date that would significantly affect the Group’s financial structure. 

Regulated information related to this press release and presentation is available on our internet site www.lvmh.com

 * Includes all Rimowa revenue for the first half of 2017.

2017 Revenue (Organic growth versus same period of 2016)

2016 Revenue (Euro millions)