LVMH has posted better-than-expected sales growth in its first quarter, helped by thriving appetite for luxury goods among Chinese consumers.
For the period ending March 31, the luxury fashion and alcohol giant – which owns high street retailers Louis Vuitton, Christian Dior, Fendi, Sephora and Thomas Pink – recorded revenue of €10.9 billion (£9.48 billion).
This equated to a 10 per cent overall increase on a reported basis and 13 per cent on an organic growth basis.
LVMH’s fashion and leather goods division was the star performer, with revenue growing 25 per cent on a reported basis during the first quarter, or 16 per cent on an organic basis.
Its watches and jewellery arm also did well, with a nine per cent uptick on a reported basis or 20 per cent on an organic basis, while perfumes and cosmetics grew eight per cent on a reported basis or 17 per cent on an organic basis.
LVMH’s selective retailing division recorded a revenue decline of two per cent last quarter, but on an organic basis it grew nine per cent.
The trading update prompted shares in LVMH to rise by more than five per cent to record highs in early trading this morning.
The company reaped the rewards of a strong rebound in Asian demand last year, and this momentum shows no signs of fading.