Continued strong growth momentum in Third Quarter 2005
LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, achieved revenue of EUR 9 598 million in the first nine months of 2005, or 12% organic growth compared to the same period in 2004. Despite a high comparison base, LVMH continued to demonstrate very strong momentum during the third quarter with organic sales growth of 12%. This performance reflects the exceptional appeal of LVMH brands and products, which continued to increase their market share, the success of the Group’s strategy and the effectiveness of the teams who succeeded in achieving ever-increasing results.
By business group, the progress was as follows:
|In million euros||First nine months of 2005||First nine months of 2004||Variation 2005 / 2004 First nine months|
|Wines & Spirits||1 684||1 457||+ 16 %||+ 12 %|
|Fashion & Leather Goods||3 384||3 107||+ 9 %||+ 12 %|
|Perfumes & Cosmetics||1 615||1 488||+ 9 %||+ 9 %|
|Watches & Jewelry||403||355||+ 13 %||+ 16 %|
|Selective Retailing||2 553||2 285||+ 12 %||+ 14 %|
|Other activities and eliminations||(41)||(23)||ns||ns|
|Total||9 598||8 669||+ 11 %||+ 12 %|
* with a comparable structure and constant exchange rates.
Wines & Spirits delivered organic revenue growth of 12% during the first nine months of 2005. The champagne brands continued to develop rapidly in Europe and Japan while Hennessy cognac confirmed strong momentum in its high-end ranges in key markets, particularly the US and China. Fashion & Leather Goods business group achieved 12% organic revenue growth during the period. Louis Vuitton recorded exceptional performance and continued to achieve double-digit organic growth. Louis Vuitton recently inaugurated its new “maison” on the Champs Élysées in Paris. Revolutionary in many respects, this “maison promenade” takes Louis Vuitton to new heights. The Group’s spring/summer 2006 collections have been unanimously lauded by the media and by buyers from around the world, in particular the collections from Christian Dior, Louis Vuitton, Fendi, Loewe and Kenzo. In Perfumes & Cosmetics, revenue for Christian Dior perfumes was largely driven by the success of the recent launch of Miss Dior Chérie, the excellent reception to Dior Homme and the sustained growth of make-up and skincare. The new KissKiss lipstick by Guerlain and the re-launch of the SuperAqua skincare range secured a good increase in revenue for the brand. Very Irresistible pour Homme by Givenchy equally contributed to its good performance. Watches & Jewelry delivered an excellent performance during the third quarter and continued to gain market share. TAG Heuer and Zenith saw rapid development in the US and Asia. Among recent launches were the new Carrera and the Golf watch by TAG Heuer and the Starissime tourbillon by Zenith. The watch Christal by Dior has numerous technical innovations and met with exceptional success. In Selective Retailing, DFS continued to make progress thanks to the recovery in tourism throughout its markets and to its strong management. Sephora showed exceptional performance in Europe and the US. Comparable store revenue rose significantly in all markets, confirming the success of our strategy. Outlook Due to the tremendous appeal of its products, LVMH expects to continue to achieve revenue growth over the remainder of the year despite the high comparison with the strong revenue reported in the fourth quarter of 2004. Tourism levels have continued to gradually improve and the economic growth in the US and Asia continues. The Group expects this momentum to extend through the fourth quarter. In this context, LVMH confirms its objective of a significant increase in profit from recurring operations in 2005.