Thursday, June 30, 2022

Louis Vuitton, Marc Jacobs parent company beats Q3 sales forecasts

The parent company of luxury fashion retailers Louis Vuitton, Dior and Marc Jacobs has recorded a six per cent increase in sales for its third quarter, beating analyst forecasts.

The LVMH Moet Hennessy Louis Vuitton group – which also owns Givenchy, Fendi, Tag Heuer, Bulgari and various upmarket alcohol brands – raked in €9.14 billion (£8.3 billion) for the three month period ending September 30, compared to predictions of €8.92 billion (£8 billion).

With organic revenue growth of six per cent, the third quarter was also an acceleration compared to the first half of the year, boosted by retail sales in Asia. 

LVMH said trading in Europe was good, except for France which continued “to feel the impact of a decline in the number of tourists”.

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Looking at its performance across the first nine months of 2016, LVMH recorded a four per cent increase in revenue at €26.3 billion (£23.6 billion).

Trading at LVMH’s fashion and leather division, its biggest profit and sales contributor, experienced an uptick in the third quarter with sales at constant currencies up five per cent against a flat first-half performance.

The group also said its flagship brand Louis Vuitton, which launched its first fragrances last month, maintained strong momentum.

Meanwhile, Fendi, Céline, Loewe and Kenzo generated good growth while Marc Jacobs continued the repositioning of its collections. 

However, an agreement was announced for the sale of LVMH‘s Donna Karan business. 

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