LVMH Reports Revenue Growth for First Quarter

LVMH Moët Hennessy Louis Vuitton has reported revenue of 9.9 billion euros (approximately $10.5 billion) for the first quarter of 2017, an increase of 15%. Organic revenue growth was 13%, according to the Paris-based luxury conglomerate – which owns Louis Vuitton, Givenchy, Céline, Loewe, and Marc Jacobs, among other brands – compared to the same period of 2016, an increase attributable to all business groups. Positive growth was achieved in Asia, Europe and the US.

According to a statement from the brand, while Louis Vuitton continues to be "well received," the reportedly troubled Marc Jacobs brand is still in the throes of "restructuring." Moreover, "in a particularly uncertain environment, LVMH will continue to focus its efforts on developing its brands, maintain strict control over costs and target its investments on the quality, excellence and innovation of its products and their distribution."

The Fashion & Leather Goods business group - home to Louis Vuitton, Givenchy, Pucci, Marc Jacobs, Loewe, Celine, Berluti, Fendi, Kenzo, EDUN, and others - achieved organic growth of 15% in the first quarter of 2017. Louis Vuitton achieved “a good start to the year, driven by creative momentum in all of its businesses,” according to a statement from the brand. Louis Vuitton’s recent Autumn-Winter show in the Marly courtyard at the Louvre was, according to the brand, “very well received.”

The statement goes on to note: “Fendi continues its good performance, supported by its leather and ready-to-wear lines. Céline, Kenzo, Loewe and Berluti showed progress. Givenchy announced the arrival of a new Artistic Director. Marc Jacobs continued its product lines changes and its restructuring. Rimowa, which recently joined the LVMH Group, will be consolidated as of the second quarter.”

As for Perfumes & Cosmetics, organic revenue growth was 12% in the first quarter of 2017. Parfums Christian Dior "recorded good growth with the success of its make-up and the continued vitality of its perfumes J'adore and Sauvage." At Guerlain, the launch of the new women's fragrance Mon Guerlain, embodied by Angelina Jolie, was a highlight of the quarter. Parfums Givenchy benefited from the success of its lipstick lines, which had rapid development in Asia. Maison Francis Kurkdjian is joining the LVMH Group. 

Interestingly, Louis Vuitton's relatively new fragrance venture - its first foray into perfumes in 70 years - was not highlighted specifically within the first quarter report.