Luxury goods group defies squeeze
Source: BI-ME with UKPA , Author: Posted by BI-ME staff
Posted: Tue October 25, 2011 8:13 pm

INTERNATIONAL. The maker of Moet champagne and Louis Vuitton bags has defied the economic gloom with strong sales and an upbeat forecast for the remainder of the year.

LVMH, the world's largest owner of luxury brands, beat forecasts with sales up 15% to 16.3 billion euros in the nine months to September 30 as each of its divisions saw underlying growth of at least 10%. Third quarter like-for-like sales were up by 15%.

Watches and jewellery were best sellers as sales jumped by 26%, boosted by TAG Heuer's Formula One watches and the recent acquisition of Italian jeweller Bulgari.

Fashion and leather rose by 15% as Louis Vuitton's leather ranges sold well, while new launches for Givenchy and Kenzo boosted perfumes and cosmetics in the last three months.

In wines and sprits, sales grew by 11%, with good sales of Hennessy cognac in Asia and champagne and sparkling wine generally.

LVMH said that the excellent performance in the year so far confirmed its confidence for the remainder of 2011, adding it will look to expand further in the most promising of its markets.

Concern about a possible slowdown in luxury good sales had been growing because of the global economic uncertainty and also weaker economic data coming out of China recently.

Last week, UK rival Burberry reaffirmed the strength of the top end of the retail market and played down fears over China as it beat market forecasts with sales growth of 30% in its first half.

LVMH's other key brands include Dom Perignon and Krug champagne, Glenmorangie whisky, and fashion names Loewe, Kenzo and Thomas Pink.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: April 19, 2014
UAE. Key sectors driving growth in the housing market are the tourism, hospitality, education and healthcare sectors, which is translating into robust population growth and demand.
date:Posted: April 17, 2014
KUWAIT. According to a newly released report by Kuwait Finance House Research, the global sukuk market saw a modest volume of US$31.14 billion in new sukuk issuances in 1Q2014. This volume represents a drop of 9.82% compared to US$34.53 billion worth of issuances in 1Q13.
date:Posted: April 16, 2014
INTERNATIONAL. The WGC pointed out that the Chinese bank savings amount to US$7.5 trillion but only about US$300 billionn is allocated to gold, signifying the potential for gold demand to grow as Chinese wealth climbs.
dhgate