Logos of the Louis Vuitton brand are seen outside a Louis Vuitton store in Bordeaux, southwestern France, October 4, 2016.REGIS DUVIGNAU/Reuters
LVMH Moët Hennessy Louis Vuitton SA, the world's biggest luxury-goods maker, reported revenue that beat estimates as shoppers in Asia and the United States snapped up its Céline handbags and new Louis Vuitton perfumes.
Third-quarter sales rose to €9.14-billion ($13.4-billion), the company said in a statement, led by a stronger than expected 5-per-cent gain from its biggest division, fashion and leather goods. Analysts had predicted €8.92-billion. The Paris-based maker of TAG Heuer watches and Hennessy cognac has managed to insulate itself from a slowdown in France by gaining ground elsewhere. Sales improved significantly in Asia, LVMH said, and its Fendi brand helped the fashion and leather-goods unit beat estimates.
"Fashion and leather goods is the big mover, though perfumes and cosmetics and selective retailing were also better," said John Guy, an analyst at MainFirst Bank AG. "Clearly momentum has improved for Louis Vuitton, notably in mainland China and in spite of weak tourism flows into France."
Revenue climbed 6 per cent on an organic basis, compared with the 4 per cent estimate. Perfumes and cosmetics sales rose 10 per cent, besting the 6 per cent expected by analysts. Louis Vuitton entered the perfumes business last month by introducing seven namesake fragrances, which had a "very promising start," the company said.
Shares of the company, whose full name is LVMH Moet Hennessy Louis Vuitton SE, rose 1.1 per cent to 157.05 euros in Paris Monday. The company, which last week agreed to buy German suitcase maker Rimowa for €640-million, released the sales figures after European markets closed. Its management will discuss the results on a call Tuesday afternoon.