PARIS, Apr 22, 2009 / FW/ — The same time that the financial report for LVMH’s first quarter for 2009 was released, the company also issued a statement officially denying reports that suggested that the company is in discussions to divest Moët Hennessy, its Wines & Spirits division. LVMH confirmed that no such negotiations are taking place.
In short, it is good news all around for LVMH stockholders. Even with the current economic conditions, the group’s recorded revenue of 4 billion euros in the first quarter of 2009 might only be a slight increase versus the same period in 2008, but it is still in the positive.
Notwithstanding the current environment, Louis Vuitton demonstrated its remarkable momentum with double-digit revenue growth during the quarter. The Group continues to gain market share in the global luxury market.
In Wines & Spirits, the positive exchange rate impact offset, in part, the decrease in champagne and cognac volumes resulted to a -16% growth.
The good news is that Fashion & Leather Goods achieved 11% revenue growth in the first quarter of 2009. Louis Vuitton recorded revenue growth in all its geographic zones, with particularly notable performances in Europe, Asia and the US.
The first quarter was driven by the success of the Damier Graphite line, launched in 2008, and numerous creations such as the new collections inspired by the collaboration between Marc Jacobs and Stephen Sprouse. Marc Jacobs has continued on its growth trajectory thanks to good momentum in accessories and in licensing. Givenchy has benefited from good sales in ready-to-wear.
In Perfumes & Cosmetics, revenue in the first quarter of 2009 decreased by 8% due in part to the difficult comparison with very strong revenue in the year-ago quarter and by retailers decreasing their stock levels.
Watches & Jewelry reported a 27% decrease in revenue in the first quarter of 2009. This was principally due to global de-stocking by watch and jewelry retailers and by the considerable exposure of TAG Heuer and De Beers to the American market.
Posting 7% growth in Selective Retailing, DFS benefited from the excellent opening of the Macao Galleria despite the general decrease in international travel, in particular in the United States. Sephora recorded revenue growth in all of its markets.