LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury group, reported that first-quarter revenue increased 7 percent to 3.8 billion euros ($5.16 billion) in the first quarter of 2007 compared to the same period in 2006, which also enjoyed strong growth. Organic revenue (not taking into account currency exchange rates) increased by 13 percent.
All business groups recorded double-digit organic revenue growth in the period, the Paris-based company said. The U.S., Asia, and Europe performed particularly well due to continued high demand from both local clients and tourists.
In the first quarter of 2007, the Watches & Jewelry business group increased 20 percent to 189 million euros ($257 million). Using organic revenue increased by 27 percent. The company said TAG Heuer performed exceptionally well in all regions. Zenith and Montres Dior also saw strong growth notably to their respective lines Defy and Christal. Chaumet benefited from the success of its jewelry collection Attrape-moi and its Dandy watches.
The company also said new products launched by its brands at BaselWorld2007 were “very well-received.” Among them: TAG Heuer’s new watch movement Calibre S as well as an upgrading of its iconic lines, Zenith’s strengthening of its Defy line, and Montres Dior’s Christal jewelry supported by Sharon Stone as the face of its new advertising campaign.
Wines & Spirits revenue grew by 9 percent for the quarter to 689 632 million euros ($937 million). Organic growth was 15 percent.
Fashion & Leather Goods revenue increased 4 percent (organic growth 10 percent) to 1.3 billion euros ($1.8 billion).
Perfumes & Cosmetics revenue increased 11 percent (organic growth 15 percent) to 663 million euros ($902 million).
“Thanks to the strength and creativity of its brands and its expansion into new markets, LVMH will continue its growth in 2007 despite the difficult monetary environment at the beginning of the year,” LVMH said in a statement. “Increasing market share and the profitability of its leading brands as well as improving the results of its developing companies remain LVMH’s top priorities. All of these elements allow us to confirm the objective of significant growth in the Group’s results in 2007.”