LVMH keeps rivals on their toes with strong first quarter
By Sarah White and Pascale Denis - Apr 11th, 08:46
Louis Vuitton owner LVMH set a high bar for rival luxury goods companies trying to capitalise on Chinese demand for high-end handbags and clothing, with stronger-than-expected sales growth in the first quarter.
The conglomerate, which owns other labels such as Christian Dior in fashion and Krug in Champagne, was boosted by a strong performance in its leather goods unit, in particular, while sales of spirits such as Cognac improved from a quarter earlier.
Its performance bodes well for other companies that derive much of their profit from high-margin handbags, and which have proved a hit with consumers in recent years, such as Kering’s Gucci or Birkin bag maker Hermès.
The group, which cited a “buoyant environment” at the start of the year, posted revenue of €12.5bn in the period, up 16% as reported. It rose 11% on a like-for-like basis, which strips out currency swings and the impact of acquisitions or disposals, beating analyst forecasts and marking an acceleration from the 9% growth notched up a quarter earlier.
The company did not break down its performance by region, with more details due during a conference call. However, it had previously flagged enduring demand in China at the start of 2019, a key market for luxury brands now trying to increasingly court Chinese consumers on their home turf.
Sales at LVMH’s leather goods unit, which is largely driven by Vuitton, rose 15%, beating the roughly 11% to 12% growth expected by analysts.
Product mix boosts revenue of Denny owner Libstar
13/08/2019 - 08:36
Consumer goods group Libstar said it managed solid volume growth for its core product offerings in the six months to end-June, but accounting changes will weigh somewhat on its interim headline earnings per share (Heps) growth.
SA's economic growth prospects keep diving
07/08/2019 - 08:39
SA’s economic growth prospects keep going from bad to worse.
Demand for tobacco-heating products and e-cigarettes boost BAT
01/08/2019 - 11:05
British American Tobacco (BAT) reported higher first-half sales, helped by higher demand for e-cigarettes and tobacco-heating products, and said revenue growth would accelerate in the second half of the year.
Strong growth for Aperol helps pep up Campari sales
01/08/2019 - 10:37
The popularity of orange aperitif Aperol and a jump in demand for tequila brand Espolon helped Campari to report better than expected sales growth in the second quarter, boosting shares in the Italian spirits group.
SA records its second consecutive trade surplus in June
01/08/2019 - 09:50
SA recorded a trade surplus of R4.42bn in June as growth in exports exceeded growth in imports.