(BFM Bourse) – The luxury group has published its activity for the first three months of the year. Its growth stood at 3% on a comparable basis.
After Publicis last week, LVMH is the second CAC 40 group to deliver its business for the first quarter.
Over the period from January to March, the number one luxury brand generated revenues of 20.694 billion euros, down 2% in published data but up 3% in comparable data, according to figures communicated by the company. Tuesday evening.
The difference between published sales and comparable sales is due to the negative impact of currency effects (-4%) and scope variations (-1%).
The slowdown in growth, more generally, can be explained by a basis of comparison that has become very demanding after years of sustained growth in the company’s revenues.
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Wines and spirits are still suffering
Fashion and leather goods, the company’s flagship division, grew by 2% on a comparable basis over the first three months of the year.
According to a Visible Alpha consensus cited by Stifel, analysts expected growth of 3% on a comparable basis for the entire group and 2% for the fashion and leather goods division.
As for other divisions, “perfumes and cosmetics” increased by 7% on a comparable basis, the “watches and jewelry” division posted a decline of 2% while selective distribution (Sephora, sales in airports) saw its sales increase by 11%.
“Wines and spirits” for their part showed a drop of 12% on a comparable basis. “The champagne activity is in decline in a context of normalization of post-Covid demand. The start of the year can also be compared to a strong increase in the first quarter of 2023, linked in particular to the replenishment of stocks at distributors”, explains the company. “Hennessy cognac is still penalized by the caution of retailers who are limiting their orders in a still uncertain context in the United States,” she continues.
By region, LVMH saw its revenues increase by 2% on a comparable basis in the United States and in Europe. Conversely, in Asia excluding Japan, revenues fell by 6%. Japan remains a powerhouse for the company, with like-for-like growth of 32% in the first quarter.
JM – ©2024 BFM Bourse
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