The bar is set high for the following! This evening, LVMH revealed a turnover of nearly € 14 billion for the first three months of the year. This amount includes for the first time sales of Tiffany, which doubled the billing for the watch and jewelry division, to 1.9 billion (+ 138%). For the entire group of 75 brands, the growth was 30% in fixed range and exchange rates (+ 32% as reported).
Since the basis of comparison was already very low in the first quarter of 2020, when China, the first country hit by the Coronavirus attack, held itself from the end of January without celebrating the Lunar New Year, LVMH has also published an evolution of its sales compared to the first quarter of 2019. Time Others, it increased by 8%.
Activity has recovered 86% in Asia
By major markets, the engines were the first two global powers, and in an astonishing way for China, whose economic normalization allowed the French group to record an organic growth of 86% of its sales volume for the Asia region excluding Japan and by 26% compared to the first months of 2019.
The United States, which is also benefiting from local customers, got off to a good start: Group sales increased 23% compared to the first quarter of 2020 and 15% over two years.
On the other hand, Europe has remained crippled by the collapse of international tourism and the shops that remain often closed in countries such as Germany, the United Kingdom, Italy, Spain and of course France: its remodeling will punish even more the activity of this second quarter, even if our country accounts for only 5%. Of total group bills. The volume of business on our continent has decreased by 9% compared to March 31, 2020 and by 18% over two years.
Status and marquinere: + 52%!
The dynamics of China and the US were based primarily on those of the two divisions that are also more profitable than LVMH, which bodes well for the first half results. The most impressive performance came from the Fashion and Leather division, with Dior and Vuitton: its sales volume increased by 52% (likewise, again) compared to the first quarter of 2020 and by 37% compared to the first quarter of 2020. For 2019. by $ 6.7 billion Euros now account for nearly half of the group’s activity.
The acceleration of growth is further further further if we refer to the last quarter of 2020 and the 18% published by Fashion & Leather Goods. ” It is very difficult to find an explanation “Jean-Jacques Guiony, during the conference call, admitted, however, that LVMH’s CFO explained that Dior, as in previous quarters, had registered growth.” Above average division When was Vuitton in the middle Among other brands, Celine, Louie and Marc Jacobs also stood out.
The wine and spirits division was marked by a 36% increase in billing over one year (and 17% over two years), driven by a 22% increase in champagne volumes and 28% for Hennessy cognac, which remains in great demand in the United States states: We can sell more », Jean-Jacques Guiony announced again, also noting the restrictive character of Brandy Charentaise, which relies on crops and aging stocks.
Two divisions continue to suffer from the collapse of international tourism and airport duplication: notably DFS stores that are cutting their costs further, and the perfume and cosmetics division, whose sales volume recovered 11% in the first quarter, while remaining down 4% over two years.
Tiffany, a trademark ” With huge potential »
The CFO has returned several times to Tiffany, the New York jeweler who was acquired at the start of the year and whose activity is also well directed: ‘ Tiffany is a very powerful brand with huge potential. Much more needs to be done in the coming years, but we will do the right thing. The stock market did not give enough time to develop the brand. We will apply a plan to him as we did with Bvlgari », Detailed by Jean-Jacques Guiony.
LVMH’s work should interact well with this post on Wednesday morning, to hear the analysts who launched the ‘ Congratulations »To the manager during the presentation.