Asia leads the charge for LVMH
First quarter revenues increased by 10 per cent to €10.9 billion (AUD$17.36 billion) on a 21 per cent increase in sales in Asia (excluding Japan), more than double the rate of growth in the US (up 10 per cent) and Europe (up 6 per cent).
Fashion & leather goods was by far the strongest category, booking a currency corrected 25 per cent increase in revenue over the prior corresponding period to €4.27 billion (AUD$6.8 billion).
All LVMH’s house categories booked growth but were impacted by currency headwinds.
“In the buoyant environment of the beginning of this year, albeit marked by unfavorable exchange rates and geopolitical uncertainties, LVMH will continue to focus its efforts on developing its brands, maintaining strict control over costs and targeting its investments on the quality, excellence and innovation of its products and their distribution,” the company said in a statement.
LVMH said performance from its name-sake brand Louis Vuitton was particularly pleasing, while selective retailing suffered from the termination of operations in Hong Kong.
“Louis Vuitton made a remarkable start to the year. Its latest fashion show at the Louvre museum in Paris received a warm welcome. Virgil Abloh was named Men’s Artistic Director. Christian Dior Couture, which was consolidated into the Group in July 2017, turned in an excellent performance and appointed Kim Jones as Artistic Director of Dior Homme. Fendi and Loro Piana grew rapidly in ready-to-wear and shoes,” LVMH said.
The business said it was adopting a cautious stance for the remainder of 2018 but said that its expanding brands in Asia, such as Sephora, were booking strong comparable growth and growing quickly online.
33 per cent of LVMH’s Q1 revenue originated in Asia (excluding Japan), compared to 18 per cent in Europe and 22 per cent in the United States, making the east far and away its most influential market.