Luxury group LVMH has announced strong third-quarter sales that beat analysts’ expectations, buoyed by good results at Italian jewellery house Bulgari, the family business it bought this year.
The Paris-based group, which includes brands such as Louis Vuitton, Veuve Clicquot and Guerlain, said sales in the third quarter of 2011 rose to €6.01 billion from €5.11 billion in the same period last year, an 18% increase. That beat the €5.9 billion estimated in a Bloomberg analysts’ poll and the €5.8 billion in a similar Reuters survey.
Revenues during the first nine month jumped 15% to €16.3 billion from €14.21 billion during the same period last year.
Nine-month revenues at the family-controlled business grew by at least 10% in all the group’s divisions, with a 26% increase in the watch and jewellery unit.
In the same division, third-quarter revenues rose to €636 million from €244 million, thanks to the recently acquired Bulgari, whose results were consolidated for the first time during the third quarter.
Revenues in the first nine months of 2011 rose by 15% in the fashion and leather goods division, the largest contributor to sales.
The wine and spirits business, which includes champagne labels such as Moet & Chandon and Dom Perignon, grew by 11% over the first nine months, while the perfumes and cosmetics unit, which includes brands such as Dior and Givenchy, reported 10% growth.
LVMH, the world's biggest luxury group, said it was confident of success for the rest of the year, confirming the growth of family-owned luxury groups despite the slowing economy.
Bernard Arnault established LVMH in 1987, using his family's money to purchase Christian Dior. The Arnault family, through holding company Groupe Arnault, owns a 47% stake in the French luxury conglomerate.