LVMH pleased with organic growth
15/04/2008
Luxury group LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury group achieved revenue of 4 billion euros in the first quarter of 2008. Organic revenue (revenue from previously owned sources with a comparable rate of currency exchange, rather than from new acquisitions or because of currency changes) increased by 12% compared to the same period in 2007, which, the company has insisted, was also a period of strong growth.
With its main currency, the euro, gaining value against the dollar and most others, this is an issue that has affected LVMH negatively. It means actual reported revenue growth is 5%.
All business groups recorded double-digit organic revenue growth in the period, with the exception of wines and spirits. The group continued to record what it said was an excellent performance in Asia, the US and Europe.
Its fashion and leathergoods businesses achieved 14% organic revenue growth in the first quarter of 2008. The group said the Louis Vuitton brand continued to perform "exceptionally well" over the period, recording double-digit organic revenue growth once more. It said the brand achieved particularly significant increases in the US, Europe and Asia. New products, resulting from acollaboration between Marc Jacobs and Richard Prince, generated "remarkable enthusiasm from clients". The reopening of the Maison Louis Vuitton in Hong Kong was another of the highlights of the first quarter.
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