LVMH shows 3 percent drop for Q3

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LVMH shows 3 percent drop for Q3

October 20, 2009

TAG Heuer was one of LVMH’s jewelry and watch bright spots, with the company noting TAG’s Monaco line, which includes this 40th anniversary re-edition Automatic Calibre 11 Chronograph.

Paris--LVMH Moet Hennessy Louis Vuitton released its third quarter results, which show overall revenues fell 3 percent compared to last year's third quarter, and jewelry and watch revenues fell 19 percent.

The luxury products group brought in revenue of 11.946 billion Euros (about $17.7 billion) in the first nine months of 2009, a figure LVMH calls "comparable" to the same period in 2008, when revenues totaled 11.959 billion. Asia, particularly China, and Europe, proved more resilient than other markets.

All business groups recorded better performances than in the first half of the year, the group said in a media release. The leveling off trend was especially notable in the wines and spirits business group, as well as in watches and jewelry, but for the latter, sales fell dramatically, slipping to about $794.5 million, compared to $978.1 million last year.

The company said the drop for the first nine months of 2009 was due to de-stocking by distributors.

Strong performers in the watches and jewelry group included TAG Heuer, which is helping to win market share, notably in the United States, and has focused on its iconic lines, such as the automatic version of the "Aquaracer 500" and new models in the "Monaco" line. Hublot showed a good level of resilience despite the crisis, and Chaumet saw good growth at its retail stores during the quarter. In addition, Montres Dior successful launched the "Mini D," the group said.

LVMH's fashion and leather goods category meanwhile achieved revenue growth of 7 percent for the first nine months of the year. Louis Vuitton in particular strengthened its position with double-digit revenue growth in the period. In addition to expanding its store network in China, where the brand has performed strongly, Louis Vuitton recently launched its first fine jewelry collection, which has been well received.

For the remainder of the year, the group said that it will continue to pursue its proactive strategy of focusing on innovation and targeted investments in key markets, relying on the appeal of its brands and the talent of its teams to increase its global leadership position in luxury products.

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LVMH shows 3 percent drop for Q3

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