Apr 11, 2018

LVMH Revenue for Q1 2018 Touches € 10.9 Billion, Up By 10%

Leading luxury group LVMH Moët Hennessy Louis Vuitton reported a revenue of € 10.9 billion for the first quarter 2018 as compared to a revenue of € 9.9 billion for Q1 2017. This marked an increase of 10% over revenue for the same period of the previous year. In terms of  organic growth (with comparable structure and exchange rates), Q1 2018 revenue was 13% higher than that of Q1 2017; and  excluding the impact of the termination of the Hong Kong International Airport concession at the end of 2017, it was 15% higher.

In terms of regions, Asia, the United States and Europe all experienced good growth; and all business segments increased in terms of organic growth.

The Watches and Jewellery business, with a revenue of € 959 million (Q1 2017: € 879 million) witnessed the highest growth in organic terms (20%) and second highest in reporting terms (9%).

The segment’s achievement was led by Bvlgari, which, the Company said, “enjoyed an excellent performance and continues to gain market share” thanks to the strength of its iconic lines Serpenti, B.Zero1, Diva and Octo.

The luxury retailer added: “The innovative products presented by LVMH's watch brands at the Baselworld Watch and Jewelry Fair were very well received, including Hublot’s Big Bang Sapphire Tourbillon, Bvlgari’s Octo Finissimo Automatic Tourbillon and new models in the iconic Monaco and Carrera lines at TAG Heuer and Defy at Zenith.”

The Fashion & Leather Goods business group continues to dominate in terms of absolute figures, accounting for a revenue of € 4,270 million in Q1 2018 (Q1 2017: € 3,405 million). It  saw the highest growth too (25%) in reported terms and achieved organic revenue growth of 16% in the first quarter of 2018.

“Driven by its continued strong creative dynamic in all its businesses, Louis Vuitton made a remarkable start to the year,” the Company asserted, referring to its fashion brands. 

In the period, while the Wines & Spirits business group reported a revenue of € 1,195 million (Q1 2017: € 1,196 million) and  organic revenue growth of 10%; the Perfumes & Cosmetics business recorded revenue of € 1,500 (Q1 2017: € 1,395 million) and an organic growth of 17%.

Selective Retailing (including such businesses as online sales, DFS, T Gallerias and stores) reported a revenue of € 3,104 million (Q1 2017: 3,154 million). While its organic revenue rose 9% in the first quarter of 2018 (or 16% excluding the termination of the Hong Kong International Airport concession), in reported terms, the business declined by 2%.

LVMH  reiterated that despite “the buoyant environment of the beginning of this year, albeit marked by unfavourable exchange rates and geopolitical uncertainties,” it would  “continue to focus its efforts on developing its brand, maintaining strict control over costs and targeting its investments on the quality, excellence and innovation of its products and their distribution.”

Pic Cap: A Bvlgari Store image

Pic Courtesy: Bvlgari