LVMH, the world’s biggest luxury goods company, saw a 12 percent rise in like-for-like revenues in the third quarter of 2017, beating estimates after a strong showing by its clothing and leather goods division. LVMH which owns fashion brands such as Louis Vuitton and Christian Dior as well as Moet & Chandon champagne and Hennessy cognac says revenues in the period came in at €30.1 billion.
Analysts had expected revenue growth on a like-for-like basis, which strips out currency swings and the effect of acquisitions or disposals, to rise 9 per cent in the quarter. The fashion and leather goods unit, the biggest contributor to LVMH’s earnings and which is powered by the Louis Vuitton label, posted like-for-like revenue growth of 13 per cent, in line with the previous three months and also beating forecasts.
Fashion label Louis Vuitton, known for its branded-luggage, leather handbags and sought-after outfits, remains a star performer. LVMH has also recently fully integrated Christian Dior into the group, which boosted non-organic revenue in the third quarter and helped offset a negative currency impact.
Like-for-like sales in LVMH’s fashion and leather goods division as a whole were up 13 per cent between July and September, unchanged from the growth posted a quarter earlier.