LVMH Reports Revenue Growth of 16% for Q1 2019; Watches & Jewelry Group Up 9%
LVMH Moët Hennessy Louis Vuitton reported a total revenue of €12,538 million for the first quarter of 2019 (Q1 2019), as compared to a total revenue of €10,854 million for Q1 2018; marking an increase of 16% in reported terms and an organic growth of 11% y-o-y.
“The trends observed in 2018 continued throughout the first quarter,” LVMH remarked. “All geographic regions are experiencing good growth.”
Led by the performance of its jewellery segment, the Watches & Jewelry business group of the Company reported a 9% increase and an organic revenue growth of 4% for Q1 2019. Revenue of the division for the period amounted to €1,046 million; as compared to a revenue of €959 million earned in Q1 2018.
Within the jewellery segment, Bvlgari “made strong progress” in its own stores, LVMH noted, driven by its iconic lines Serpenti, Divas’Dream, Lvcea and its new Fiorever collection. Other developments included Chaumet’s introduction of its new Liens Evidence creations in gold and diamonds; the opening of a pop-up store in the Saint-Germain quarter in Paris, while its historic store in Place Vendôme has been put under renovation.
“The innovative products presented by LVMH’s watch brands at the Baselworld Watch & Jewelry Fair were very well received, including Hublot’s Classic Fusion Ferrari GT watch, Bvlgari’s Serpenti Seduttori and Octo Finissimo Chronograph GMT Automatic watches, TAG Heuer’s connected watch model for golfers, and Zenith’s new Defy Inventor and Defy El Primero 21 Carbon models,” LVMH summed up.
The Company’s largest segment remained the Fashion & Leather Goods business group with a revenue of €5,111 million earned for Q1 2019, as compared to a revenue of €4,270 million reported for the same period of the previous year. This translates into a reported growth of 20% and an organic growth of 15%.
LVMH’s Wines & Spirits business group recorded a revenue of €1,349 million in Q1 2019 as againt €1,195 million earned in Q1 2018; thus recording a reported growth of 13% and an organic growth of 9%.
The Perfumes & Cosmetics business took in a revenue of €1,687 million in the period as compared to a revenue of € 1,500 million for the same period of the previous year; thus realising an increase of 12% and an organic growth of 9% in the first quarter of 2019.
Selective Retailing was the second largest segment after the Fashion & Leather Goods business for LVMH. The division reported a revenue of €3,510 million for Q1 2019 as against a revenue of €3,104 million for Q1 2018. This represents a reported increase of 13% and an organic growth of 8%.
“In the buoyant environment of the beginning of this year, albeit marked by geopolitical uncertainties, LVMH will continue to focus its efforts on developing its brands, maintaining strict control over costs and targeting its investments on the quality, excellence and innovation of its products and their distribution,” the Company stressed. “The Group will rely on the talent and motivation of its teams, the diversification of its businesses and the geographical balance of its revenue to reinforce, once again in 2019, its global leadership position in luxury goods.”