LVMH Moët Hennessy Louis Vuitton, the world’s leading high quality products group, recorded revenue of 8.6 billion Euros for the first quarter 2016, an increase of 4%. Organic* revenue growth was 3% compared to the same period in 2015.
The US market is strong and Europe remains well oriented except for France which is affected by a fall in tourism. Asian markets are varied, but Japan continues to progress.
Revenue by business group:
|In million euros||Q1 2016||Q1 2015||% Change Q1 2016 / Q1 2015|
|Wines & Spirits||1 033||992||+ 4 %||+ 6 %|
|Fashion & Leather Goods||2 965||2 975||0 %||0 %|
|Perfumes & Cosmetics||1 213||1 129||+ 7 %||+ 9 %|
|Watches & Jewelry||774||723||+ 7 %||+ 7 %|
|Selective Retailing||2 747||2 648||+ 4 %||+ 4 %|
|Other activities and eliminations||(112)||(144)||-||-|
|Total||8 620||8 323||+ 4 %||+ 3 %|
* with comparable structure and constant exchange rates.
The Wines & Spirits business group recorded organic revenue growth of 6% in the first quarter of 2016. Champagne experienced a strong start to the year especially in Europe where growth continued. Hennessy maintained its remarkable performance in the United States. In China, the first quarter showed better momentum after the impact of destocking by distributors in 2015. Other spirits, Glenmorangie and Belvedere, continued to grow.
The Fashion & Leather Goods business group was stable. Louis Vuitton maintained its creative momentum as shown by its numerous innovations across all areas, notably in leather goods, watches and jewelry with the new Blossom collection. The legendary leather line models achieved good success. Fendi enjoyed an excellent performance, driven by its leather and ready-to-wear lines. Céline and Kenzo experienced good starts to the year. Donna Karan and Marc Jacobs continue to work on the evolution of their product lines.
In Perfumes & Cosmetics, organic revenue growth was 9% in the first quarter of 2016. Christian Dior recorded strong growth with the remarkable success of Sauvage and the vitality of its iconic perfumes J’adore and Miss Dior. The launch of the new perfume Poison Girl was also a highlight of the quarter. Building on the success of the perfume, Guerlain expanded La Petite Robe Noire into the world of make-up. Benefit continued its strong innovation in make-up. Make Up For Ever and Kendo’s brand portfolio are expanding rapidly.
The Watches & Jewelry business group recorded organic revenue growth of 7% in the first quarter of 2016 outperforming the market. Bvlgari recorded an excellent performance driven by the success of its iconic jewelry collections and innovations. TAG Heuer had a good quarter, benefiting from its successful strategy of focussing on its core offering. The new connected smartwatch was an immense success. A number of LVMH watch brand innovations were extremely well received at the Basel Watch fair.
In Selective Retailing, organic revenue growth was 4% in the first quarter of 2016. Sephora gained market share around the world. North America maintained its exceptional growth rate. DFS continues to be faced with an uncertain economic environment in Asia. The opening of the T Galleria in Siem Reap in Cambodia was a highlight of the quarter.
LVMH will continue to focus its efforts on developing its brands, will maintain a strict control over costs and will target its investments on the quality, the excellence and the innovation of its products and their distribution. The Group will rely on the talent and the motivation of its teams, the diversification of its businesses and the good geographical balance of its revenue to increase, once again in 2016, its global leadership position in luxury goods.
During the quarter and to date, no events or changes have occurred which could significantly modify the Group’s financial structure.
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