The world's leading luxury goods group is evidently gaining market shares globally in spite of the volatile world economy. Observers note that LVMH's ongoing growth is taking place in the context of negative factors such as the demonstrations in Hong Kong, which caused it to suffer a 25 percent drop there due to a decline in tourism, and the tensions between the U.S. and China and between the U.K. and the European Commission.
The group, which is generally the first in the sector to release its quarterly figures, reported an overall sales increase on an organic basis of 11 percent for the third quarter ended on Sept. 30. The stock exchange reacted by boosting LVMH's share value by 5.5 percent, which contributed to an increase of almost 49 percent since the beginning of this year.
The group's Fashion & Leather Goods division, led by Louis Vuitton, generated organic growth of 19 percent in the quarter, beating all the other divisions. This came after increases of 15 percent in the first quarter and 20 percent in the second quarter, leading to a rise of 18 percent for the first nine months of 2019.
Across all divisions, revenues were up in the quarter by 20 percent in Japan, where customers bought heavily ahead of an increase in the sales tax on Oct. 1. They rose by 12 percent in the rest of Asia, 11 percent in Europe and 8 percent in the U.S.
In reported terms, the group's total turnover went up by 16 percent to €38.4 billion in the first nine months, with a 22 percent increase in the Fashion & Leather Goods segment to €15.9 billion.
LVMH said that Louis Vuitton enjoyed a “remarkable performance in all its businesses and in all regions” during the nine-month period, with higher purchases by Chinese tourists in Europe. Christian Dior also made remarkable progress. Berluti, Loro Piana, Loewe and Rimowa enjoyed good progress. The other brands continued to strengthen their position in the market.
Looking at the future, LVMH said it will “rely on the power of its brands and the talent of its teams to further extend its global leadership in the luxury market,” focusing on innovation and targeted geographic expansion in the most promising markets.