LVMH has posted revenue growth of 13% in the first quarter of 2018.
An appetite for luxury from Chinese millennial shoppers and a boost in fashion and leather goods are reported to have bolstered the luxury group’s Q1 sales.
According to Business of Fashion, the parent company of labels such as Dior and Louis Vuttion has reaped the benefits of a luxury renaissance.
In LVMH’s press release, they said:
LVMH Moët Hennessy Louis Vuitton, the world’s leading high quality products group, recorded revenue of 10.9 billion Euros for the first quarter 2018, an increase of 10%. Organic growth* was 13% compared to the same period of 2017, an increase to which all business groups contributed. It was 15% excluding the impact of the termination of the Hong Kong International Airport concession at the end of 2017. Asia, the United States and Europe experienced good growth.
The group also reported organic revenue of fashion and leather goods grew by 16%, and credited the increase to a number of factors including Louis Vuitton’s success on the runway, and new Artistic Directors at LV, Dior Homme and Céline.
Perfumes and cosmetics also performed highly in the first quarter, with organic revenue increasing by 17%, in part due to the mega success of Fenty Beauty by Rihanna, as well as advances in skincare across the group’s cosmetic brands.
Read the full press release from LVMH here.
Luxury goods have had a renaissance in recent years thanks to the rise of social media and cash-rich millennials. LVMH’s Q1 growth is largely due to innovating their offering to meet customers’ expectations, particular cross-border in China. Clearly, there has never been a better time for luxury retailers to consider cross-border eCommerce. Brands considering going global need to research the markets they want to enter, have a point of differentiation, offer a great localized shopper experience and provide preferred payment methods.