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.
Lower retail sales reflect slowing US economy
02/04/2019 - 08:43
US retail sales unexpectedly fell in February, the latest sign that economic growth has shifted into low gear as stimulus from $1.5-trillion in tax cuts and increased government spending fades.
Retail sales contract by 1.4%
06/03/2019 - 11:15
Retail sales for December 2018 contracted by 1.4% year on year, from a downwardly revised 2.9% year on year in November (previously 3.1%).
Lindt expects 5-7 percent growth this year
06/03/2019 - 11:02
Swiss chocolate maker Lindt & Spruengli said it expected organic sales to grow 5-7 percent this year, in line with mid-term targets, as it works to improve the performance in its North American unit.
GDP growth for 2018 slightly higher than expectations
05/03/2019 - 14:29
SA emerged out of 2018 with growth of 0.8% — which is slightly higher than expectations.
SA limped out of 2018 with growth below 1%
19/02/2019 - 14:20
SA will have limped out of 2018 with growth of below 1%.