The share price of LVMH Moët Hennessey Louis Vuitton reached a level of €92.36, the highest in ten years and 70 percent higher than one year ago, as the world's largest luxury group reported an 11 percent sales increase to €4.47 billion for the first quarter of 2010, which represents organic growth of 13 percent compared with the same period in 2009. The results appear to confirm the recovery of the luxury goods sector, which is turning out faster than previously expected.
Across the group, the U.S. market enjoyed a 20 percent rebound. Asian remained the largest market for LVMH and a key growth driver, with sales in China rising by 25 percent. Sales in Europe increased by 11 percent.
All the segments of LVMH's business reported growth, but fashion and leathergoods were not the stars this time. Wines and spirit went up by 20 percent, with champagne sales growing by 33 percent, and watches and jewelry jumped by 20 percent.
Revenues from fashion and leathergoods grew by 8 percent on a reported basis to €1.73 billion, or 10 percent in terms of organic growth. Louis Vuitton was again singled out for its continued double-digit growth, and Fendi got a good start to the year. Good performances in this division were seen in Europe, Asia and the U.S.
Christian Dior Group, which controls LVMH, has similarly announced sales increases of 11 percent on a reported basis and 13 percent on an organic basis for the quarter, reaching €4.65 billion. Christian Dior Couture, which doesn't belong to LVMH, had increases of 6 percent in euros and 8 percent in constant currencies, hut its retail sales jumped by 16 percent.
