October 14th, Market Watch: LVMH sales jump on luxury-goods demand
- Aspirational brands will continue to be in demand, even if it's only window shopping. But when consumers can 'treat' themselves, they will return to the brands which maintained their core values, rather than discount and 'knock-off' themselves for lower price point segments.
- Continue innovation during the "downturn", creating new designs, innovations, and when the demand returns, the new product will increase sales.
- Stay true to your brand. Retain your core values. When the demand returns your brand foundation will support your reemergence.
LVMH has a 'unique ' portfolio of Luxury brands.
- Wines & Spirits: brands include Moet & Chandon, Dom Perignon, Hennessy cognac
- Fashion & Leather Goods: brands include Louis Vuitton, Givenchy, Fendi, Marc Jacobs
- Perfumes & Cosmetics: brands include Dior, Emilio Pucci
- Watches & Jewelry: brands include TAG Heuer, De Beers
- Selective Retailing: brands include Sephora, DSF Galleria
The mission of the LVMH group is to represent the most refined qualities of Western "Art de Vivre" around the world. LVMH must continue to be synonymous with both elegance and creativity. Our products, and the cultural values they embody, blend tradition and innovation, and kindle dream and fantasy
Luxury Goods Giant LVMH Moet Hennessy Louis Vuitton Said Thursday its third-quarter sales rose 24% as wealthy customers snapped up designer watches and cases of Dom Perignon.
LVMH said the performance confirmed the trends seen in the first half of the year, with very strong growth across Asia, Europe and the U.S. Sales were also stronger across every division, it added.
The strongest revenue growth was in the group's luxury watches and jewelry business, where sales rose over 30% to 244 million in the third quarter, helped by the launch of new Tag Heuer models and increased market share for Hublot.
The stock is up 42% since the end of December. (My investment tip: post holiday season sales will increase it even more! The Asia sales will continue to explode during the 'holiday' season, because surprisingly the Chinese market celebrates the season almost more than the 'western' world.)
Among its other divisions, LVMH said fashion and leather-goods sales rose 26% to 1.95 billion euros as momentum returned to its Fendi and Donna Karan brands.