French luxury conglomerate LVMH Moet Hennessy Louis Vuitton has had a strong start to the year despite the impact of the termination of its Hong Kong International Airport duty-free business at the end of last year.
Its revenue grew by 10 per cent for the first quarter to reach €10.9 billion.
Organic growth was 13 per cent compared to the same period last year, with all business groups contributing to the result. Excluding the loss of the DFS Group airport business, the figure would have been 15 per cent.
There was 20 per cent organic revenue growth for the watches and jewellery business group, with Bulgari continuing to gain market share.
Organic revenue increased 17 per cent in perfumes and cosmetics, with strong growth momentum again for Parfums Christian Dior.
The fashion and leather goods business group had organic revenue growth of 16 per cent, with Louis Vuitton making a remarkable start to the year, says the company. Christian Dior Couture, which was consolidated into the group in July, turned in an excellent performance, while Fendi and Loro Piana grew rapidly in ready-to-wear and shoes.
For wines and spirits, organic revenue grew 10 per cent. Champagne volumes rose by 1 per cent. In a context of supply constraints, Hennessy cognac volumes grew by 5 per cent.
In selective retailing, organic revenue rose 9 per cent, or 16 per cent excluding the termination of the Hong Kong airport concession. Sephora continued to gain market share with its new store concept continuing its roll-out.
Online sales grew rapidly all over the world. DFS performed particularly well in T Galleria outlets in Hong Kong and Macau, while the new store in Cambodia performed strongly.
Despite unfavourable exchange rates and geopolitical uncertainties, the year started with a buoyant environment, says LVMH. It says it will continue to focus its efforts on developing its brands, maintaining strict control over costs and targeting its investments on the quality, excellence and innovation of its products and their distribution.