The French luxury goods group Moët Hennessy Louis Vuitton (LVMH) missed market expectations with its sales figures for the first nine months of the current 2023 financial year published on Tuesday evening. In the third quarter, growth weakened significantly compared to the first half of the year.
In the months January to September, group sales amounted to 62.2 billion euros, exceeding the corresponding previous year’s level by ten percent. On an organic basis – i.e. adjusted for currency effects and changes in the Group portfolio – the growth rate was 14 percent.
In the most recent quarter, revenues are only slightly above the previous year’s level
In the third quarter, however, revenues rose by only one percent (organically +9 percent) to just under 20.0 billion euros, after increasing by 15 percent (organically +17 percent) in the first half of the year.
The retail division achieved the strongest growth in the first nine months with the chains Sephora and DFS. Their sales reached 12.4 billion euros, which corresponded to an increase of 23 percent (+26 percent) compared to the same period last year.
According to the group, in addition to “strong momentum” in North America, Europe and the Middle East as well as numerous new openings, the recovery in international tourism after the Covid-19 pandemic subsided contributed in particular. This effect was particularly noticeable in Hong Kong and Macao, explained LVMH.
Sales of fashion and leather goods are growing by eleven percent this year
The fashion and leather goods segment also achieved double-digit growth, with revenues of around 30.9 billion euros, eleven percent (currency-adjusted +16 percent) above the comparable previous year’s level. However, analysts had previously expected a higher plus. The fashion house Louis Vuitton has achieved “excellent” results, it said in a statement. In addition, sales continued to grow for brands such as Christian Dior, Loewe, Loro Piana, Rimowa, Marc Jacobs and Berluti.
In the perfume and cosmetics division, sales in the first nine months grew by eight percent (organically +12 percent) to 6.0 billion euros, in the watches and jewelry division they increased by five percent (currency-adjusted +9 percent) to just under 8, 0 billion euros.
Sales of wine and spirits, however, clearly fell short of the previous year’s level. In this segment, revenue fell by ten percent (organically -7 percent) to 4.7 billion euros. The group attributed the significant losses, among other things, to the recent weak demand for Hennessy brand cognac in the USA.