Editor’s Note
LVMH’s strong first-quarter results, with revenue up 16%, provide an early and positive signal for the global luxury sector in 2019.
The world’s largest luxury group, LVMH (Louis Vuitton Moët Hennessy), was the first major group to report its quarterly sales for 2019, serving as a key indicator for the industry’s health. Overall, LVMH recorded revenue of EUR 12.5 billion for the first quarter of 2019, representing a 16% increase compared to the same period in 2018. Organic growth (note: with comparable structure and exchange rates) was 11% versus 2018. The trend is positive across all business groups, with the Fashion & Leather Goods division delivering an outstanding performance, reporting organic growth of 15%. Revenues increased in all geographic regions.
Of primary interest here, the LVMH Group reported a positive first quarter of 2019 for its Watches & Jewelry Division, which includes brands such as TAG Heuer, Bulgari, Hublot, and Zenith. With revenue of just over EUR 1 billion during the period (EUR 1,046 million to be precise), the Watches & Jewelry Division recorded a reported growth of 9%, while organic growth was up by 4%. The performance of the watch brands themselves may be more varied, as LVMH stated that the division’s overall performance was primarily driven by Jewelry, particularly by the strong performance of Bvlgari in its own stores.
Looking back at 2018, LVMH recorded a 10% growth in revenue, with sales reaching EUR 46.8 billion. The Watches & Jewelry division’s revenue rose 9% to EUR 4,123 million. If the current trend continues, the LVMH Group could be on track for another record year.
