LVMH records better-than-expected sales growth

LVMH update

LVMH has reported better-than-expected for its third quarter,  boosted by organic growth in all its business.

The parent company of luxury retailers Louis Vuitton, Dior, Bulgari, Givenchy and Marc Jacobs said its quarterly revenue  rose 14 per cent to €10.38 billion (£9.28 billion), beating analyst expectations of around  â‚¬10.2 billion.

Meanwhile, like-for-like revenues, which strip out currency swings and acquisitions or disposals, grew 12 per cent from a year earlier to €30.1 billion euros (£26.9 billion) – beating the nine  per cent organic growth forecast by Reuters.

LVMH is often regarded as a bellwether for the global luxury sector, with a portfolio of dozens of brands that go beyond fashion, including watchmakers Tag Heuer and Hublot, alcohol brands Hennessy Cognac and Moet, and cosmetics chain Sephora.

LVMH’s fashion and leather goods division accounted for more than a third of its total sales, rising 27 per cent to €3.94 billion (£3.52 billion) after the integration of Christian Dior Couture in April.

Like-for-like sales in the same division were up 13 per cent between July and September, unchanged from the growth posted a quarter earlier.

“In an uncertain geopolitical and currency environment, LVMH will continue to be vigilant,” the company said in a statement.

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