LVMH Q108 Revenues Top €4 Billion

Luxury retail group LVMH Moet Hennessy Louis Vuitton realized revenues of €4.002 billion ($6.33 billion) in the first quarter of 2008. Organic revenue – revenue with a comparable structure and at constant exchange rates – increased 12 percent over $3.804 billion ($6.026 billion) in the previous year period. However, as a result of the negative impact of exchange rates, the group’s reported revenue growth is 5 percent.

Most LVMH business groups  recorded double-digit organic revenue growth in the first quarter

All business groups in the company, which include wines and spirits; fashion and leather goods; perfumes and cosmetics; watches and jewelry and selective retailing (a consortium of specialty brands) recorded double-digit organic revenue growth in the period, with the exception of the wines and spirits sector.

Watches and jewelry revenues rose 19 percent overall to €211 million in the first quarter. The reported increase was 12 percent. Watch and jewelry revenues were €189 million in the first quarter of 2007.

The firm commented that Swiss watch brand TAG Heuer performed extremely well due to its new Grand Carrera collection. In addition, “the exceptional success of the Christal collection was confirmed at Montres Dior. Chaumet and De Beers increased their revenue and continued their network expansion. Innovations by TAG Heuer, Zenith and Dior unveiled at the Basel fair contributed to large increases in orders,” the statement concluded.

LVMH expects that its growth will continue, thanks to the “strength and creativity of its brands,” as well as its expansion into new markets, and despite the challenging and uncertain economic environment at the beginning of this year.

The watches and jewelry division comprises TAG Heuer, Chaumet, Christian Dior Watches, Zenith, Fred and De Beers Diamond Jewellers, a joint venture with the diamond company.