Luxury conglomerate LVMH Moët Hennessy Louis Vuitton recorded third quarter organic revenue growth of 9 percent to 19, 964 million euros down from a 17 percent rise in the second quarter. Organic revenue growth of 14 percent to 62,205 million euros in the first nine months of 2023.
The company said in a statement that after taking into account the negative 4 percent exchange rate impact, revenue for the group was up 10 percent. Europe, Japan and the rest of Asia achieved double-digit organic growth.
“In an uncertain economic and geopolitical environment, the group is confident in the continuation of its growth,” LVMH said.
LVMH reports slower revenue growth compared to Q2
The fashion & leather goods business of LVMH achieved organic revenue growth of 16 percent or 11 percent reported to 30,912 million euros in the first nine months of 2023. In the third quarter, growth was 9 percent to 9,750 million euros compared to 21 percent increase in the second quarter.
The company added that Louis Vuitton delivered an excellent performance, Christian Dior continued to deliver remarkable growth in all its product categories, Loewe’s growth continued to be driven by J.W. Anderson’s bold, creative leadership and by the success of the latest new leather goods designs, Loro Piana saw strong growth and launched the first capsule collection made with recycled cashmere, Fendi expanded its retail network and Rimowa, Marc Jacobs and Berluti also recorded strong results.
The group’s perfumes & cosmetics business group achieved organic revenue growth of 12 percent to 6,021 million euros in the first nine months of 2023, driven by its innovative momentum and its highly selective distribution strategy. In the third quarter, revenue growth was 9 percent to 1,993 million euros.
LVMH’s selective retailing reports 26 percent sales increase
The watches & jewelry business group achieved organic revenue growth of 9 percent to 7,951 million euros in the first nine months and 3 percent to 2,524 million euros in the third quarter.
LVMH further said that following the successful reopening of “The Landmark”, its New York store, Tiffany continued its store network renovation program, in Tokyo in particular, where two new stores were opened, in the Ginza and Omotesando districts. In watchmaking, highlights of the quarter included the opening of Tag Heuer’s flagship store in New York and Hublot’s appointment as the Official Timekeeper for the FIFA Women’s World Cup in Australia.
In selective retailing, organic revenue growth was 26 percent to 12,431 million euros in the first nine months and 26 percent to 4,036 million euros in the third quarter. Sephora, the company said, performed well and continued to gain market share, with particularly strong momentum in North America, Europe and the Middle East. Its distribution network continued to expand, particularly in the United Kingdom, where a second store is due to open soon.
DFS benefited from the gradual recovery in international travel and, in particular, from the return of tourists to the flagship destinations of Hong Kong and Macao. Le Bon Marché is growing steadily.