LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, said its revenue grew 8 percent to 11.4 billion euros ($16.2 billion) during the first nine months of 2007, when compared with the previous year. Taking away the impact of currency fluctuations (organic revenue), the company said its year-over-year revenue grew at a rate of 13 percent for the period.
The Paris-based company said it recorded “accelerated growth in the third quarter compared to the already very favorable trends at the beginning of the year, thanks notably to the continued exceptional performance of Louis Vuitton.” Organic revenue growth reached 15 percent during the period, “a development which is even more noteworthy in view of the robust growth achieved in the third quarter of 2006,” the company said. “This performance reflects the exceptional appeal of the LVMH brands and products, which continued to increase their market share, the success of the Group’s strategy and the effectiveness of the teams who succeeded in achieving ever-increasing results.”
Its Watches & Jewelry business continued with its double-digital growth trends reporting a 16 percent increase in revenues for the first nine months of 2007. Organic growth for the period was 22 percent. Total revenue for the period was 589,000 million euros ($836 million).
TAG Heuer registered strong growth “thanks to the excellent performance of its Carrera, Aquaracer and Link lines,” the company said. Zenith made “particularly remarkable advances” in the Middle East, Russia, and the U.S. Dior continued its progress thanks to the success of Christal, notably in Europe and Asia. Chaumet and De Beers made “significant progress,” the company said.
In its other business groups, LVMH reported the following year-over-year results:
Its Wines & Spirits business group reported a 9 percent increase (14% organic) in revenue to nearly 2.1 billion euros (%2.95 billion) for the first nine months of 2007 led by sales of champagne and cognac.
Fashion & Leather Goods business reported an 8 percent increase (14% organic) in revenue to 4 billion euros ($5.7 billion) for the period led by Louis Vuitton sales in Europe, the U.S., and Asia.
Perfumes & Cosmetics business grew at a 9 percent rate (12% organic) to 1.96 billion euros ($2.78 billion) for the period.