LVMH: 16% revenue growth in the first nine months of 2019

Paris, FRANCE


Paris, October 9, 2019

LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded a 16% increase in revenue, reaching € 38.4 billion in the first nine months of 2019. Organic revenue grew 11% compared to the same period of 2018.

In the third quarter, revenue was up 17% compared to the same period in 2018. Organic revenue growth was 11%, a performance in line with the trend recorded in the first half of the year. The United States and Europe saw good progress in the third quarter, as did Asia, despite the difficult context in Hong Kong.

Revenue by business group:

In million euros9 months 20199 months 2018  Change 2019 / 2018
First 9 months
  Reported            Organic*
Wines & Spirits3 9193 565+ 10 %+ 7 %
Fashion & Leather Goods15 87313 052+ 22 %+ 18 %
Perfumes & Cosmetics4 9124 410+ 11 %+ 8 %
Watches & Jewelry3 2613 021+ 8 %  + 4 %
Selective Retailing10 5559 544+ 11 %+ 6 %
Other activities & eliminations(122)(463)nsns
Total38 39833 129+ 16 %+ 11%

* with comparable structure and constant exchange rates. The exchange rate impact was + 4% and the structural impact was + 1% (Belmond integration since April 2019).

The Wines & Spirits business group recorded organic revenue growth of 7% in the first nine months of 2019. Growth was strong in China as well as in the United States due to steady demand. Champagne volumes were down slightly over the period. Prestige vintages experienced strong growth while continuing a price increase policy throughout the range. Hennessy cognac volumes increased by 10%, driven by the VS ranges.

The Fashion & Leather Goods business group achieved organic revenue growth of 18% in the first nine months of 2019. Louis Vuitton enjoyed a remarkable performance in all its businesses and in all regions. The "Louis Vuitton X" exhibition in Los Angeles, which traces the history of the Maison and celebrates its many artistic collaborations, has been a great success. Louis Vuitton continued to strengthen its production capacity with the inauguration in September of a new workshop in France. Christian Dior also made remarkable progress. The new Champs-Elysées boutique in Paris, which combines innovative experiences with architectural virtuosity, has been very well received. Fendi unveiled several partnerships in the world of art and music. Celine launched its first haute parfumerie collection, for which a dedicated boutique will open soon in Paris. Loro Piana, Loewe and Rimowa enjoyed good progress. The other Maisons continued to strengthen.

The Perfumes & Cosmetics business group recorded organic revenue growth of 8% in the first nine months of 2019, driven mainly by the momentum of its flagship brands. Parfums Christian Dior performed well, particularly with the vitality of its iconic fragrances and the new Joy and Sauvage ranges. Makeup and skincare were significant areas of growth. Guerlain made remarkable progress, driven by the Abeille Royale skincare and the Rouge G and L’Essentiel makeup lines. Parfums Givenchy saw rapid growth of its new fragrance, L'Interdit, and its makeup line. Fresh, Fenty Beauty by Rihanna and Acqua di Parma made good progress.

In the first nine months of 2019, the Watches & Jewelry business group recorded organic revenue growth of 4%, driven by jewelry. Bvlgari enjoyed an excellent performance, especially in its own stores. Its iconic lines Serpenti, B.Zero1, Diva and Fiorever, as well as the new Serpenti Seduttori watch collection contributed to this performance. After Beijing in 2017 and Tokyo in 2018, this summer, Chaumet presented its new exhibition in Monaco; "Chaumet in Majesty. Jewels of Sovereigns since 1780". In watches, TAG Heuer continued to focus on its iconic lines. Hublot made solid progress, continuing to enrich its lines with new models from several collaborations.

The Selective Retailing business group achieved organic revenue growth of 6% in the first nine months of 2019. Sephora recorded steady growth in revenue and gained market share in all key markets. Online sales continued to grow at a rapid pace. The expansion of its distribution network continued with the opening of its first stores in Hong Kong and Auckland. At DFS, the Venice Galleria is enjoying good momentum, benefiting in particular from strong demand from international travellers. DFS continued to grow over the first nine months of the year despite the slowdown in Hong Kong.

OUTLOOK
In a growth environment since the beginning of the year, albeit marked by an uncertain geopolitical context, LVMH will continue to be vigilant. The Group will pursue 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 2019.

During this 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 www.lvmh.com.
  
ANNEX

LVMH – Revenue by business group and by quarter

 

2019 Revenue (Euro millions)
 
FY 2019

 
Wines &
Spirits
Fashion &
Leather Goods
Perfumes &
Cosmetics
Watches &
Jewelry
Selective
Retailing
Other activities
& eliminations
Total

 
First Quarter1 3495 1111 6871 0463 510(165)12 538
Second Quarter1 1375 3141 5491 0893 588(133)12 544
Total First Half2 48610 4253 2362 1357 098(298)25 082
Third Quarter1 4335 4481 6761 1263 457176*13 316
Nine Months3 91915 8734 9123 26110 555(122)38 398

* Includes all Belmond revenue for the period April to September 2019.

2019 Revenue (organic growth versus the same period of 2018) 
FY 2019

 
Wines &
Spirits
Fashion &
Leather Goods
Perfumes &
Cosmetics
Watches &
Jewelry
Selective
Retailing
Other activities
& eliminations
Total

 
First Quarter+9%+15%+9%+4%+8%-+11%
Second Quarter+4%+20%+10%+4%+7%-+12%
Total First Half+6%+18%+9%+4%+8%-+12%
Third Quarter+8%+19%+7%+5%+4%-+11%
Nine Months+7%+18%+8%+4%+6%-+11%


2018 Revenue (Euro millions)
FY 2018

 
Wines &
Spirits
Fashion &
Leather
Goods
Perfumes &
Cosmetic
Watches &
Jewelry
Selective
Retailing
Other activities
& eliminations
Total

 
First Quarter1 1954 2701 5009593 104(174)10 854
Second Quarter1 0764 3241 3771 0193 221(121)10 896
Total First Half2 2718 5942 8771 9786 325(295)21 750
Third Quarter1 2944 4581 5331 0433 219(168)11 379
Nine Months3 56513 0524 4103 0219 544(463)33 129

LVMH
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, Colgin Cellars, Hennessy, Glenmorangie, Ardbeg, Belvedere, Woodinville, Volcán de Mi Tierra, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape Mentelle, Newton, Bodega Numanthia and Ao Yun. Its Fashion and Leather Goods division includes Louis Vuitton, Christian Dior Couture, Celine, Loewe, Kenzo, Givenchy, Pink Shirtmaker, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Nicholas Kirkwood, Loro Piana, RIMOWA, Patou and Fenty. LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums Givenchy, Kenzo Parfums, Perfumes Loewe, Benefit Cosmetics, Make Up For Ever, Acqua di Parma, Fresh, Fenty Beauty by Rihanna and Maison Francis Kurkdjian. LVMH's Watches and Jewelry division comprises Bvlgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred and Hublot. LVMH is also active in selective retailing as well as in other activities through DFS, Sephora, Le Bon Marché, La Samaritaine, Groupe Les Echos, Cova, Le Jardin d’Acclimatation, Royal Van Lent, Belmond and Cheval Blanc hotels.

This document may contain certain forward looking statements which are based on estimations and forecasts. By their nature, these forward looking statements are subject to important risks and uncertainties and factors beyond our control or ability to predict, in particular those described in LVMH’s Reference Document which is available on the website (www.lvmh.com). These forward looking statements should not be considered as a guarantee of future performance, the actual results could differ materially from those expressed or implied by them. The forward looking statements only reflect LVMH’s views as of the date of this document, and LVMH does not undertake to revise or update these forward looking statements. The forward looking statements should be used with caution and circumspection and in no event can LVMH and its Management be held responsible for any investment or other decision based upon such statements. The information in this document does not constitute an offer to sell or an invitation to buy shares in LVMH or an invitation or inducement to engage in any other investment activities.”

LVMH CONTACTS

 Analystes and investors
 Chris Hollis
 LVMH
 + 33 1 44 13 21 22
 Media
 Jean-Charles Tréhan
 LVMH
 + 33 1 44 13 26 20
 

MÉDIA CONTACTS
 
 France
 Brune Diricq / Charlotte Mariné
 Publicis Consultants
 + 33 1 44 82 47 20
 France
 Michel Calzaroni / Olivier Labesse /
 Hugues Schmitt / Thomas Roborel de Climens
 DGM Conseil
 + 33 1 40 70 11 89
 Italy
 Michele Calcaterra, Matteo Steinbach
 SEC and Partners
 + 39 02 6249991
UK
Hugh Morrison, Charlotte McMullen
 Montfort Communications
 + 44 7921 881 800
 US
 James Fingeroth, Molly Morse, Anntal Silver
 Kekst & Company
 + 1 212 521 4800
 China
 Daniel Jeffreys
 Deluxewords
 +44 772 212 6562
 +86 21 80 36 04 48

Attachment


Attachments

LVMH 2019 Third Quarter Revenue