LVMH: 22% increase in revenue for the first nine months of 2012

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LVMH Moët Hennessy Louis Vuitton, the world’s leading high quality products group, recorded revenue of €19.9 billion for the first nine months of 2012, an increase of 22% on the comparable period in 2011. After taking into account the consolidation of Bulgari, as of 30 June 2011, and a positive currency impact, organic revenue grew by 10%.

The Group recorded a 15% rise in revenue for the third quarter. Organic revenue growth was 6%, a solid result in the current economic environment, particularly when compared to the strong performance in the same period of 2011. The US market continued to demonstrate momentum. In spite of a challenging economic environment, Europe and Asia also contributed to the third quarter performance. Louis Vuitton continues to gain market share throughout the world.

Revenue by business group:

In million euros	9 months 2012	9 months 2011	Change 2012/2011 first 9 months
			Reported	Organic*
Wines & Spirits	2 765	2 306	+ 20 %	+ 12 %
Fashion & Leather Goods	7 179	6 189	+ 16 %	+ 8 %
Perfumes & Cosmetics	2 625	2 311	+ 14 %	+ 8 %
Watches & Jewelry	2 033	1 212	+ 68 %	+ 7 %
Selective Retailing	5 452	4 378	+ 25 %	+ 14 %
Other activities and eliminations	(188)	(93)	ns	ns
Total	19 866	16 303	+ 22 %	+ 10 %

* with comparable structure and constant exchange rates.

The Wines & Spirits business group recorded organic revenue growth of 12% for the first nine months of 2012. The Group’s champagne brands achieved a sustained increase in volume over the period. An improvement in product mix and the price increases announced at the start of the year also contributed to the progress made by the Champagne business. All geographic regions recorded increases with particularly strong advances in emerging markets. The Wine business benefitted from the rapid development of sparkling wines. Hennessy cognac continued to see strong momentum across all categories.

The Fashion & Leather Goods business group recorded organic revenue growth of 8% for the first nine months of the year. Louis Vuitton reported a double-digit rise in revenue, driven by the powerful appeal of its products and the unique experience offered to all clients at its stores, and further reinforcing its advance on the global market. The Shanghai opening of the first Maison Louis Vuitton in China and the launch of a number of collections in collaboration with the artist Yayoi Kusama marked some of the high points of the quarter. Celine achieved remarkably strong performance across all its markets and product ranges. Fendi undertook a targeted expansion of its distribution network. All other fashion brands continued to show improved performance.

The Perfumes & Cosmetics business group registered organic revenue growth of 8% for the first nine months of 2012. Christian Dior continued to show strong momentum underpinned by the growth of its iconic perfumes and the relaunch of Dior Addict, backed by a new publicity campaign. The makeup and skincare segments also contributed to the strong performance thanks to the Prestige range and the new Diorskin Nude products. Guerlain benefitted from the successful launch of La Petite Robe Noire and solid progress with its Orchidée Impériale skincare products. Givenchy benefitted from broadened distribution of its makeup range. Benefit continues to achieve strong growth thanks to its They’re Real mascara. Fresh opened its first store in the Chinese market.

The Watches & Jewelry business group recorded organic revenue growth of 7% for the first nine months of 2012. LVMH’s watch brands made further progress driven by their iconic ranges and innovation. The launch of TAG Heuer’s new Link Lady and Zenith’s Pilot range were among the highlights for the quarter. In Jewelry, the success of Bulgari’s Serpenti and B.Zero1 collections was confirmed as the brand pursued a very selective distribution strategy. Chaumet and Fred delivered good performance in their own boutiques.

The Selective Retailing business group achieved organic revenue growth of 14% for the first nine months of 2012. DFS continued to expand its presence in Hong Kong with the opening of its third Galleria in the city centre and establishing three new concessions at the airport which will be operational at the year-end. Sephora produced a remarkably strong performance, winning market share across all regions of the world. Its growth momentum remains strong with, notably, significant progress being made in China and Russia and the considerable success of its first store opening in Brazil. On-line sales in France and the United States saw particularly strong gains.

Outlook

Despite the background of an economic slowdown in Europe, LVMH remains confident in its outlook for 2012. The Group will continue to pursue its proactive strategy centered 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, in 2012, its global leadership position in luxury products.

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 available on our internet site www.lvmh.com.

 

Appendix - Revenue by business group and by quarter

9 months 2012

Euro millions	Wines & Spirits	Fashion & Leather Goods	Perfumes & Cosmetics	Watches & Jewelry	Selective Retailing	Other activities and eliminations	Total
First quarter	926	2 374	899	630	1 823	(70)	6 582
Second quarter	833	2 282	828	713	1 767	(39)	6 384
Third quarter	1 006	2 523	898	690	1 862	(79)	6 900
Total revenue	2 765	7 179	2 625	2 033	5 452	(188)	19 866

9 months 2011

Euro millions	Wines & Spirits	Fashion & Leather Goods	Perfumes & Cosmetics	Watches & Jewelry	Selective Retailing	Other activities and eliminations	Total
First quarter	762	2 029	803	261	1 421	(29)	5 247
Second quarter	673	1 942	715	315	1 410	(10)	5 045
Third quarter	871	2 218	793	636	1 547	(54)	6 011
Total revenue	2 306	6 189	2 311	1 212	4 378	(93)	16 303