LVMH, the world’s largest luxury goods company, revealed a rise in revenues for the third quarter of 2017, beating estimates after a strong showing by its fashion and leather goods division, as well as cosmetics and beauty category. The Paris-based conglomerate – which owns fashion brands including Louis Vuitton, Celine, Givenchy, and Christian Dior, as well as Sephora, Moet & Chandon champagne and Hennessy cognac – reported on Monday that revenues grew by 14 percent during the time frame and amounted to 30.1 billion euros ($35.35 billion).
The Bernard Arnault-owned group's Fashion & Leather Goods unit (the most profitable of all of its divisions), of which the most valuable contributor is Louis Vuitton, posted like-for-like revenue growth of 14 percent, in line with the previous three months and also beating forecasts. The group's Perfumes & Cosmetics divisions also posted like-for-like revenue growth of 14 percent, emphasizing the importance of that segment for the group.
Of its Fashion & Leather Goods business group, in particular, LVMH said in a statement on Monday: "Louis Vuitton is still driven by its exceptional strength in the field of innovation, illustrated by its first smart watch and the many creations across all of its activities. The qualitative development of its distribution network continues, as illustrated by the opening of the Maison Louis Vuitton Vendôme in Paris, which brings together under one roof all the savoir-faire of the Maison. Christian Dior Couture, whose business is consolidated for the first time in the third quarter, achieved an excellent performance.
A retrospective at the Museum of Decorative Arts in Paris, which has had tremendous success, celebrates the 70th anniversary of the Maison. Fendi is stepping up its development in the United States with the opening of several new stores. Loro Piana, Céline and Loewe are making good progress. Rimowa has been consolidated since January 2017, while Donna Karan was sold at the end of 2016."
As for Perfumes & Cosmetics: "Parfums Christian Dior continued its strong performance. Perfumes benefited from the continued success of J'adore, Sauvage, and from the launch of the eau de parfum Miss Dior. In makeup, the range of Rouge Dior lipstick grew rapidly. Guerlain rolled out its new Mon Guerlain fragrance internationally. Parfums Givenchy continued its strong expansion, driven by makeup."
Another key takeaway in regards to the conglomerate's cosmetics division? "Fenty Beauty by Rihanna, [which is] distributed exclusively at [LVMH-owned cosmetics chain] Sephora, experienced an exceptional start."
Despite such gains, LVMh notes that due to the "uncertain geopolitical and currency environment," it "will continue to be vigilant. The Group will pursue its strategy focused on innovation and targeted geographic expansion in the most promising markets. LVMH will rely on the power of its brands and the talent of its teams to further extend its global leadership in the luxury market in 2017."