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PARIS, April 18 (Reuters) – LVMH, the world’s
biggest luxury goods group, said first-quarter revenue grew 25
percent thanks to particularly strong growth in Asia and the
United States, as wealthy shoppers shrugged off a tumultuous
global economy.
Describing the economic outlook for Europe as “uncertain”,
LVMH said on Wednesday it would keep a tight control over costs
and continue to grow its brands which include Louis Vuitton,
champagne house Moet Hennessy and fashion designer Celine.
Quarterly sales rose to 6.58 billion euros ($8.65 billion).
On a like-for-like basis, revenue increased 14 percent
year-on-year, with the strongest divisional growth seen at
mall-friendly brand Sephora and Dfs, a chain of shopping
centres.
Sales of fashion and leather goods, which account for around
one-third of group revenues, rose 12 percent on a like-for-like
basis. The company said that Louis Vuitton, which accounted for
half of group operating profit in 2011, continued its double
digit revenue growth.
In February, chief executive Bernard Arnault said that the
company’s priority remained organic growth, with acquisitions
the exception.
Last year LVMH bought Italian jeweller Bulgari, helping to
account for a 141 percent rise in reported revenue growth for
the quarter in the watches and jewellery division.
LVMH, which took the luxury world by surprise in late 2010
by announcing it had built a stake in Hermes, said in December
its holding had risen to 22.3 percent though it repeated it did
not want to buy the maker of Kelly handbags and silk scarves.
($1 = 0.7610 euro)
(Reporting by Nina Sovich; Editing by Lionel Laurent and Mark
Potter)
