“Our third-quarter figures reflected a tougher environment and I will not deny it,” Jean-Jacques Guiony, LVMH’s chief financial officer, told a conference call on Tuesday. He blamed record levels of Chinese and Japanese tourism in the year-ago quarter for creating onerous comps.
“We are relatively confident for the near future,” he stressed. “One shouldn’t see the glass half empty, in my view.”
He noted that Vuitton raised prices in Europe by 8 percent on Oct. 1, primarily to address a price discrepancy that has been driving Asians to make purchases on the Continent.
Guiony’s assurances helped shares in LVMH close up 3.6 percent to close at 128.25 euros, or $174.38 at current exchange, on the Paris Bourse.
Citing a “mixed business environment,” LVMH on Monday said sales advanced 14.8 percent in the third quarter to 6.9 billion euros, or $8.63 billion, versus 6.01 billion euros, or $8.51 billion, in the year-ago period, as reported.
In organic terms, revenue growth stood at 6 percent in the third quarter, versus 10 percent in the second quarter and 14 percent in the first three months of the year.
On Tuesday, LVMH provided additional data that underscored contrasting business in various regions.
In the first nine months, revenues in local currencies advanced 7 percent in Japan and Europe, 11 percent in Asia and 12 percent in the U.S., excluding Hawaii.
Business in Asia was varied, with sales of wines and spirits advancing 24 percent versus only 5 percent for fashion and leather goods.
Regarding the latter division, Guiony blamed modest organic growth of 5 percent in the third quarter to weakness on the wholesale side of the business, some of it deliberate as brands including Bulgari, Celine, Chaumet, Tag Heuer and Fendi pursue a more selective distribution policy. He stressed there was “no major slowdown” at Vuitton in the third quarter, with European growth slightly higher than the second-quarter and Asia slightly lower due to tourist flows.
Gains of 14 percent in Asia for perfumes and cosmetics point to the fact that “the appetite for luxury goods is there,” he added.
Guiony declined to give any forecast for the crucial holiday sales period, but noted, “The comparative basis will be quite tough in Q4 as well.”
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty