DFS posts ‘excellent first quarter’ despite softening Japanese Yen
Source: ©The Moodie Report
By Dermot Davitt
DFS recorded an “excellent” performance in the first quarter of 2013, according to parent company LVMH Moët Hennessy Louis Vuitton, which today released its results for the period ended 31 March, 2013.
DFS is part of LVMH’s Selective Retailing division, which posted organic revenue growth of +17% year-on-year (+16% reported).
LVMH said: “DFS recorded an excellent performance driven by the continued growth in Asian tourism despite a decline in expenditure from Japanese tourists resulting from the weaker Yen.” [Note:The weakening of the Yen has been a major factor in recent weeks. At 31 March 2012 the Yen stood at 82.83 to the US Dollar; today it is at 98.05.]
LVMH, the world’s leading luxury products group, recorded a +6% increase in first quarter 2013 revenue to €6.9 billion. Organic revenue growth was +7% compared to the same period in 2012 (which also saw a sharp rise).
The company said: “The Group continued at the start of the year to perform in line with the trends of the second half of 2012 with strong growth in Asia and the USA, while Europe demonstrates good resistance despite a challenging economic environment.”
The Wines & Spirits
business group recorded organic revenue growth of +7% in the first quarter of 2013. Champagne was “robust” in Asia, which compensated for softer demand in Europe. Hennessy Cognac continued its momentum, with a solid performance in the United States and rapid growth in China. Other spirits, including Glenmorangie and Belvedere, experienced a good start to the year, said LVMH.
The Fashion & Leather Goods
business group recorded organic revenue growth of +3% in Q1. Louis Vuitton continued its progress, strengthening its product lines. Fendi benefited from continued developments in fur and leather and pursues its programme of enlarging its store network. Céline made progress in its own stores and the other brands continued to develop well, said LVMH.
In Perfumes & Cosmetics
, organic revenue growth was +5% in the first quarter of 2013. Christian Dior recorded further solid growth, in particular through the continued strength of J’adore, Miss Dior and Dior Homme. The new lipstick Dior Addict and the premium skincare Prestige also contributed to the brand’s growth. Guerlain continued to benefit from the strong momentum of La Petite Robe Noire and its high-end skincare Orchidée Impériale. Givenchy rolled out its fragrance Gentlemen Only, while Benefit and Fresh continued to strengthen their positions.
The Watches and Jewellery
business group recorded organic revenue growth of +2% in Q1 2013, on top of a strong performance in the same period in 2012. This performance was achieved in a context of prudent buying by multi-brand retailers. TAG Heuer’s first quarter was marked by the 50th anniversary of its Carrera line and the new partnership with McLaren which was announced at the Geneva Motor Show. Hublot and Zenith also had a good start to the year. In jewellery, Bulgari confirmed the success of its Serpenti line and recorded strong revenue growth in its own stores.