LVMH reports strong growth driven by fashion & leather goods
LVMH Moët Hennessy Louis Vuitton recorded revenue of 44.2 billion euros in the first nine months of 2021, up 46 percent compared to 2020. The company said organic revenue growth over the period was 40 percent compared to 2020.
Compared to 2019, organic growth was 11 percent, with trends in the third quarter, up 11 percent comparable to those of the first half, both by activity and by region. The company added that the fashion & leather goods business group recorded organic growth of 38 percent compared to the third quarter of 2019, identical to that recorded over the first six months of the year. The United States and Asia continued to see double-digit growth.
LVMH posts strong growth across fashion & leather goods segment
The company’s fashion & leather goods business group recorded organic revenue growth of 57 percent in the first nine months of 2021 compared to the same period of 2020 and 38 percent compared to 2019 to 21.3 billion euros.
The company said, growth in the third quarter remained exceptional compared to the third quarter of 2020, which marked a return to growth after a declining first half of 2020.
Louis Vuitton, which is celebrating the 200th anniversary of the birth of its founder, performed well, driven by innovation and by the quality of its products. Christian Dior showed exceptional momentum as well. At Fendi, Kim Jones’ first collection was rolled out in stores, while Celine enjoyed strong growth in its ready-to-wear and leather goods lines created by Hedi Slimane. Loewe and Marc Jacobs also performed well.
The group’s perfumes & cosmetics business group recorded organic revenue growth of 30 percent to 4.7 billion euros over the first nine months compared to the same period of 2020. On an organic basis, revenue was down 2 percent compared to the first nine months of 2019.
The watches & jewelry business group recorded organic revenue growth of 49 percent in the first nine months of 2021 to 6.1 billion euros compared to the same period of 2020 and 4 percent compared to 2019 excluding Tiffany, which was consolidated for the first time in 2021.
LVMH reports return of growth at Sephora
In selective retailing, organic revenue was up 13 percent to 7.8 billion euros compared to the first nine months of 2020 and down 23 percent compared to the same period of 2019.
LVMH added that Sephora returned to its 2019 level of activity despite the tough commercial environment, marked by the closure of several stores during part of the year. Online revenue showed strong growth throughout the world. In addition to its own stores, Sephora expanded its distribution in the United States with its first Beauty spaces within Kohl’s department stores. After signing a partnership with the European online platform Zalando, Sephora acquired the British online distributor Feelunique, which specializes in prestige beauty. The expansion of its network also continued in Asia, particularly in China.
The company further said that DFS remained heavily constrained by the very limited recovery in international travel to most destinations, while La Samaritaine, which reopened in June following renovation, is enjoying a promising start.