LVMH And Bulgari Off To A Great Start
The year 2011 got off to an extremely promising start for the French luxury group LVMH and the Italian jeweller Bulgari, which will very soon be joining its ranks.
The world leader in high quality products, LVMH Moët Hennessy Louis Vuitton recorded sales in the first quarter of 2011 of 5.2 billion Euros, an increase of 17%. Organic growth (i.e. at comparable structure and exchange rates) for its part was up 14% compared to the same period in 2010, already a strong result (+13%). This excellent performance is down to the positive dynamic evident in the United States, Europe and Asia.
By groups of activities, watches and jewellery recorded the highest increase with +28% to 261 million Euros (+20% organic growth). Next came wines and spirits, up 20% to 762 million (+17% organic growth) and selective distribution, which accounted for 1,421 million (+20%, +17% organic growth). Fashion and leather goods for their part registered sales up 17% to 2,029 million (+13% organic growth), while perfumes and cosmetics recorded a 9% increase to 803 million (+11% organic growth).
In the watchmaking segment, the group notes in its statement that “TAG Heuer strengthened its iconic Carrera collection with chronographs unrivalled worldwide for their technical qualities. Zenith, with a very strong showing, continued renovation work at its Manufactory in Le Locle. Hublot benefited from the strong dynamic of the Big Bang and King Power lines and the opening of new stores, particularly in the Place Vendôme, while the quarter was marked by the announcement of the strategic alliance with Bulgari.”
For the latter too, the first quarter of 2011 was excellent. The Italian jeweller recorded a turnover of 253.8 million Euros, an increase of 27.5% (+22.3% at comparable exchange rates).
Regarding the different sectors of activity, the best performers were perfumes and cosmetics (+32.9% to 60.1 million) and jewellery (+29.3% to 114.0 million). Watches followed with sales of 50.6 million, an increase of 21.9% (+16.4% at comparable exchange rates). Accessories (+19.0% to 20.7 million) and hotels (+14.3% to 4.2 million) brought up the rear.
Not surprisingly, Asia represented Bulgari’s main engine of growth between January and March this year: +33.5% to 122.3 million Euros, with Japan in decline (+10.5% to 39.4 million). In second place came the American continent (+20.2% to 32.7 million), while Europe saw its sales increase by 16.5% to 79.5 million (Italy: +7.8% to 25.0 million). With 19.4 million, the Middle East for its part recorded an impressive rate of growth of +59.8%.