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Women's Wear News
2005
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LVMH Posts 15% Rise in First Quarter Sales
By Godfrey DeenyApril 20, 2006 @ 12:51 AM - Paris |
Luxury’s largest conglomerate, LVMH, posted a striking 15 percent rise in
first quarter sales, as its wines and spirits, and watches and jewelry divisions
led the robust growth.
Total revenue grew to 3.555 billion Euros (or $4.337 billion at current exchange
rates) in the opening three months of 2006, from 3.086 billion Euros ($3.765
billion) a year earlier, as the bell weather group for the luxury industry
showed that consumers worldwide continued to be highly attracted to quality name
brands.
In a release, LVMH pointed to several optimistic factors looking ahead: less
unfavorable monetary environment, strong growth in the American and Asian
economies, and some European markets recovering. “All of these elements allow
us to confirm the objective of a very significant growth in the Group’s
results for 2006,” LVMH said.
Wines & Spirits grew by 23% to 632 million Euros ($771 million), where a
punchy 10% growth in volume of champagne sold was backed up by a sustained
pricing policy. The burgeoning Chinese market also saw Hennessy “make
exceptional progress in Asia, notably in China,” LVMH added. LVMH also
controls Moët & Chandon, Dom Pérignon, Veuve Clicquot, Krug, Ruinart,
Chateau d'Yquem, Chandon Estates, Hennessy, Glenmorangie, Belvedere and Chopin.
Fashion & Leather Goods revenue grew advanced 14 % over the quarter to 1.296
billion Euros ($1.581 billion), led by Louis Vuitton, which again posted
double-digit organic growth.
Fendi continued its rapid expansion and its leather goods revenue grew strongly
over the period, LVMH insisted, without however, releasing any exact figures.
LVMH does not break out individual brands’ sales performances, and does not
release profit and loss figures with its quarterly results.
The Paris-based group added that the new Spy range and the B.Fendi collections
from the Rome-based label “are two examples of the brand’s excellent
potential and improvements in the distribution network continue.”
LVMH controls some ten fashion labels, including Celine, Loewe, Kenzo, Givenchy,
Thomas Pink, Emilio Pucci, Donna Karan and Marc Jacobs, but limited its
commentary on these houses to saying that “the group’s other brands enjoyed
a very good start to the year.”
Perfumes and Cosmetics grew by 18% to 597 million Euros ($728 million), as
Parfums Christian Dior recorded an “extraordinary success” with Capture
Totale, the skincare range modeled by a brightly blonde Sharon Stone.
In perfumes, Guerlain benefited from an “excellent launch” of its new Orchidée
Impériale skincare product; Parfums Givenchy revenue was driven by
‘vintage’ expressions of its Organza, Amarige and Very Irresistible lines;
and BeneFit Cosmetics recorded another period of double-digit revenue growth.
Watches & Jewelry had an excellent start, posting 23 % rise in sales to 150
million Euros ($183 million), buoyed by strong sales at Basel, the giant watch
fair that is the world’s biggest, which took place last month. Basel saw the
launch of the latest models from TAG Heuer, Zenith and Montres Dior, resulting
“in a marked increase in orders.”
LVMH one less than stellar performance was in its Selective Retailing division
that advanced 9% to 895 million Euros ($1.091 billion). The group’s DFS duty
free boutique chain was supported by the continued rapid growth in Chinese
tourism. Sephora, the well-located beauty and scents chain, grew market share in
France, and achieved double-digit revenue growth on a same store basis in the
US.
“Increasing market share and the profitability of our leading brands as well
as improving the performance of our developing companies and cash generation,
remain LVMH’s top priorities,” LVMH insisted.
EBay is talking to both Yahoo and Microsoft about the
possibility of working together to thwart growing competition from Google. The
talks could result in an alliance in which eBay would increase ad spending with
its chosen partner and provide consumer data.
NEWS ALERT
from The Wall Street Journal
April 25, 2006
President Bush said he plans to temporarily halt deposits to the strategic
petroleum reserve in an effort to relieve pressure on gas-pump prices, which are
edging toward $3 a gallon nationwide. Bush also set steps to ease environmental
standards governing fuel grades.