“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.”
Supermodel @helenachristensen teamed up with longtime friend and designer @camillastaerk on a joint @paredeyewear collaboration. The lineup features three styles and 11 offerings, all of which embody a vintage feel. Get all the details on how they celebrated the collab on WWD.com. #wwdaccessories #wwdeye (📷: @slovekinpics)
“It’s a hard industry to keep motivated, as well, so finding different subjects and people is what makes it worth it – when you’re like, oh, I’ve met great people, I feel like I’ve done something good, and I feel proud of having done this,” said French actress Stacy Martin on being grateful for the variety of roles she’s take on. Read @ktauer’s full interview with Martin on her her latest film “Godard Mon Amour.” #wwdeye (📷: @danieldorsa)
After showing in front of the Eiffel Tower for his last two women’s ready-to-wear collection, it looks like @anthonyvaccarello may be heading to the Big Apple. Sources say the designer will stage his next @ysl show in NYC on June 6. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
EXCLUSIVE: Two and half months after John Targon, cofounder and codesigner of Baja East, was hired as creative director of the contemporary division at Marc Jacobs, he has left the company, WWD has learned. Marc Jacobs International, which is owned by LVMH Moët Hennessy Louis Vuitton, confirmed Targon’s departure in a statement: “John Targon is a talented designer and we appreciate the work he has done here. Ultimately working together did not make sense for the brand and we wish him the best.” Read the story by @jessiredale, link in bio. #wwdnews
@theluxurycollection is officially launching a collection, tapping Sofia Sanchez de Betak for the capsule. Over 30 styles will be featured in the Chufy x The Luxury Collection, debuting next month at Bergdorf Goodman, The Webster, FiveStory and more. De Betak, known as “@chufy,” drew inspiration for the collection from her trips to Japan in the past year #wwdfashion
@lhd, founder and CEO of @thewebster, has teamed up with @lebonmarcherivegauche for the European launch of her ready-to-wear line, LHD. The launch will come with an exclusive pop-up opening today that’s set to run through May 20. Located on the second floor, it carries her debut Miami-themed resort collection, launched in November as see-now-buy-now. #wwdfashion