“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.”
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast