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.
Retail sales remain muted with consumers under pressure
20/09/2019 - 14:31
Retail sales for July marginally declined to 2 percent year on year as sales growth continued to reflect a muted demand in South Africa, with consumers’ discretionary income under strain.
Rhodes Food Group's turnover rises amid healthy international growth
16/09/2019 - 11:14
The international turnover of Rhodes Food Group, which makes Bull Brand corned meat and Bisto gravies, rose 13.4% in the 10 months to end-July, boosted by a weaker rand and exports of fruit snacks to the US.
4 reasons to be hopeful about South Africa’s economy
12/09/2019 - 14:40
Markets responded positively to South Africa’s economic growth rebounding in the second quarter, up 3.1%, and 0.9% for the year to June 2019.
British American tobacco to cut more than 2000 jobs
12/09/2019 - 10:28
British American Tobacco plans to cut 2 300 jobs around the world, the company announced.
Foschini's cash sales climb, but credit is under pressure
03/09/2019 - 13:58
The JSE-listed clothing retailer the Foschini Group [JSE:TFG] announced a 14.1% increase in cash sales in its South African operations in the first 21 weeks of 2020, while sales on credit only rose 0.9%.