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Louis Vuitton Sales Surge in Economic Rebound

Tuesday, 13 Apr 2010 09:34 AM


PARIS – The world's biggest luxury company, LVMH, reported an 11-percent jump in sales in the first quarter on Tuesday as buyers snap up watches, jewellery and high-end drinks after months of economic gloom.

Sales rose to 4.47 billion euros (6.07 billion dollars) -- higher than the 4.25 billion euros expected by analysts polled by Dow Jones Newswires, thanks in particular to the Asian market, Moet Hennessy Louis Vuitton said.

Paris-based LVMH, which owns brands including Moet champagne, Louis Vuitton handbags and Dior perfume, was hit by the crisis last year, with its net profit falling by 13 percent in 2009 and sales slipping by one percent.

"All of the business groups recorded double-digit organic revenue growth," the company said in a statement, adding that sales "benefited from the end of destocking by distributors... and from a recovery in final consumer demand."

Wines and spirits sales, which were heavily affected by the crisis in 2009, rose by 18 percent, while watches and jewelry were up 33 percent.

Overall sales in the fourth quarter of 2009 had risen by just one percent.

But the group said it was still "taking into account the uncertainty of the strength of the economic recovery" and would concentrate on developing its brands, keeping costs in check and making selective investments.

On the stock exchange, LVMH topped the gainers, with its shares up 3.50 percent at 91.80 euros in morning trade in an overall flat market.

Analysts at CM-CIC, a French investment group, said investors welcomed the company's strong sales performance, with the stock outperforming so far this year with a gain of 16 percent.

Copyright © 2010 AFP. All rights reserved.

© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

   
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Tuesday, 13 Apr 2010 09:34 AM
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