Source - GNW

Paris, 10 October 2016

LVMH Moët Hennessy Louis Vuitton, the world's leading luxury products group, recorded a 4% increase in revenue, reaching €26.3 billion, for the first nine months of 2016. Organic revenue grew 5% compared to the same period in 2015.  

With organic revenue growth of 6%, the third quarter saw an acceleration compared to the first half of the year. Asia, excluding Japan, showed a significant improvement during the quarter. The United States remains well positioned, as does Europe, with the exception of France which continues to feel the impact of a decline in the number of tourists.

Revenue by business group:

In million euros9 months 20169 months 2015Change 2016 / 2015
First 9 months
 Reported  Organic*
Wines & Spirits 3 281 3 129 + 5 % + 7 %
Fashion & Leather Goods 8 991 8 872 + 1 % + 2 %
Perfumes & Cosmetics 3 578 3 371 + 6 % + 8 %
Watches & Jewelry 2 486 2 404 + 3 % + 4 %
Selective Retailing   8 283 7 878 + 5 % + 6 %
Other activities & eliminations (293) (366) ns ns
Total 26 32625 288+ 4 %+ 5 %

* With comparable structure and constant exchange rates.

The Wines & Spirits business group recorded organic revenue growth of 7% in the first nine months of 2016. Champagne volumes grew 3% over the period, with a particularly strong performance in prestige cuvées. Hennessy cognac saw its volumes increase by 9%. The United States continued to enjoy strong growth and China showed improved momentum during the period, following the destocking of distributors in 2015. Other spirits, Glenmorangie and Belvedere continued their development.  

The Fashion & Leather Goods business group recorded organic revenue growth of 2% for the first nine months of 2016 with an acceleration in the third quarter. Louis Vuitton maintained strong momentum and ventured into a new territory with the launch of the Louis Vuitton perfumes. The seven fragrances, created by Master Perfumer Jacques Cavallier Belletrud, have made a very promising start. The new Horizon luggage, conceived by Marc Newson, was also among the major innovations of the last quarter. Fendi generated significant revenue growth. Loro Piana inaugurated a flagship store in Paris on Avenue Montaigne. Céline, Loewe and Kenzo experienced good growth. Marc Jacobs continued the repositioning of its collections. An agreement was announced for the sale of the Donna Karan business. LVMH announced the acquisition of a majority stake in the German Maison, Rimowa, global leader in high quality luggage. The transaction, subject to the approval of the competition authorities, is due to be completed in January 2017.   

The Perfumes & Cosmetics business group recorded organic revenue growth of 8% for the first nine months of 2016, outperforming the market. Parfums Christian Dior continued its strong performance, gaining market share in all countries. The continued momentum of its iconic fragrances, the great success of Sauvage and its latest innovations in the makeup segment were the main drivers of the growth of the brand. Guerlain successfully expanded its perfume brand, La Petite Robe Noire, into the world of makeup, a segment in which Givenchy saw strong growth. Supported by a bold marketing campaign, the launch of the new perfume Kenzo World, was a success. Benefit, Make Up For Ever, Fresh and Kat Von D all delivered excellent performance.

The Watches & Jewelry business group recorded organic revenue growth of 4% for the first nine months of 2016. Bvlgari continued to gain market share and showed major creative momentum by enriching its iconic product lines, notably with the recent launch of Serpenti Seduttori. TAG Heuer made great progress in a difficult market, benefiting particularly from the success of its new collections and its smartwatch. Hublot continued the development of its iconic lines, Classic Fusion and Big Bang. Chaumet furthered its progress, driven by the success of its Joséphine and Lien collections.

The Selective Retailing business group recorded organic revenue growth of 6% for the first nine months of 2016. Sephora continued to gain market share in all its markets and recorded double-digit revenue growth. Online sales rapidly increased in all regions and Sephora continued its store opening program. DFS navigated a difficult tourist environment in Asia, particularly in Macao and Hong Kong. After Cambodia in the first half, DFS opened in September a new T Galleria in Europe, in Venice, thus expanding its presence in major tourist destinations.

In an uncertain geopolitical and currency environment, LVMH will continue its strategy focused on innovation and targeted geographic expansion in the most promising markets. LVMH will rely on the power of its brands and the talent of its teams to further extend its global leadership in the luxury market in 2016.

During the quarter and to-date, no events or changes have occurred which could significantly modify the Group's financial structure.

Regulated information related to this press release and presentation is available on our internet


LVMH - Revenue by business group and by quarter

2016 Revenue (Euro millions)

FY 2016 Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities & eliminations Total
First Quarter 1 033 2 965 1 213 774 2 747 (112) 8 620
Second Quarter 1 023 2 920 1 124 835 2 733 (67) 8 568
Total First Half 2 0565 8852 3371 6095 480(179)17 188
Third Quarter 1 225 3 106 1 241 877 2 803 (114) 9 138
Nine months 3 2818 9913 5782 4868 283(293)26 326

2016 Revenue (Organic growth versus same period of 2015)

FY 2016 Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities & eliminations Total
First Quarter +6% 0% +9% +7% +4% - +3%
Second Quarter +13% +1% +6% +2% +7% - +4%
Total First Half +9%0%+8%+4%+5%-+4%
Third Quarter + 4% +5% +10% +2% +8% - +6%
Nine months +7%+2%+8%+4%+6%-+5%

2015 Revenue (Euro millions)

FY 2015 Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics* Watches & Jewelry Selective Retailing* Other activities & eliminations Total
First Quarter 992 2 975 1 129 723 2 648 (144) 8 323
Second Quarter 938 2 958 1 099 829 2 627 (67) 8 384
Total First Half 1 9305 9332 2281 5525 275(211)16 707
Third Quarter 1 199 2 939 1 143 852 2 603 (155) 8 581
Nine months 3 1298 8723 3712 4047 878(366)25 288

* reclassification of the cosmetics business Kendo from Selective Retailing to Perfumes & Cosmetics.

LVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits by a portfolio of brands that includes Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier, Château d'Yquem, Domaine du Clos des Lambrays, Château Cheval Blanc, Hennessy, Glenmorangie, Ardbeg, Wenjun, Belvedere, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape Mentelle, Newton, Bodega Numanthia and Ao Yun-Shangri-La. Its Fashion and Leather Goods division includes Louis Vuitton, Céline, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Donna Karan, Marc Jacobs, Berluti, Nicholas Kirkwood and Loro Piana. LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums Givenchy, Parfums Kenzo, Perfumes Loewe as well as other promising cosmetic companies (BeneFit Cosmetics, Make Up For Ever, Acqua di Parma and Fresh). LVMH is also active in selective retailing as well as in other activities through DFS, Sephora, Le Bon Marché, La Samaritaine, Royal Van Lent and Cheval Blanc hotels. LVMH's Watches and Jewelry division comprises Bulgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred, Hublot and De Beers Diamond Jewellers Ltd, a joint venture created with the world's leading diamond group.

"Certain information included in this release is forward looking and is subject to important risks and uncertainties and factors beyond our control or ability to predict, that could cause actual results to differ materially from those anticipated, projected or implied. It only reflects our views as of the date of this presentation. No undue reliance should therefore be based on any such information, it being also agreed that we undertake no commitment to amend or update it after the date hereof."

Analysts and investors: Chris Hollis
+ 33 1.4413.2122
France : Michel Calzaroni/Olivier Labesse/
Sonia Fellmann/Hugues Schmitt
+ 33 1.4070.1189
  DGM Conseil  
UK: Hugh Morrison / Charlotte McMullen +44 7921.881.800
  Montfort Communications  
Italy: Michele Calcaterra/ Matteo Steinbach +39 02 6249991
  SEC and Partners  
US: James Fingeroth/Molly Morse/
Anntal Silver
+1 212.521.4800
  Kekst & Company  

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Source: LVMH via Globenewswire