LVMH Moet Hennessy Louis Vuitton, the world’s biggest luxury-goods maker, reported third-quarter revenue that beat estimates, led by a stronger-than-expected performance in fashion and leather goods. Sales rose to 9.14 billion euros ($10.2 billion), the Paris-based conglomerate, which owns Louis Vuitton, Givenchy, and Céline, among roughly 70 other fashion and non-fashion companies, said in a statement Monday, with revenues climbing 6 percent on an organic basis, compared with the 4 percent median estimate.
In addition to improved trading in major markets such as China and resilient demand in the United States, the group's 3-month revenues were boosted by its fashion and leather-goods unit, where sales rose 5 percent in the quarter, compared with the 2 percent median estimate. The group said its flagship brand Louis Vuitton, which launched its first fragrances last month, maintained strong momentum. It also noted that "Fendi generated significant revenue growth" and that Marc Jacobs continued the repositioning of its collections.
"Asia, excluding Japan, showed a significant improvement during the quarter,” LVMH said in the statement. “The U.S. remains well positioned, as does Europe, with the exception of France which continues to feel the impact of a decline in the number of tourists.”
Per Reuters, some analysts see LVMH as better positioned to resist the industry's current downturn than other luxury goods makers such as Richmond - parent to Cartier, Alaia, and Chloe, which has been hammered by a slump in demand for high-end watches and has had to buy back stock to keep retailers afloat.