LVMH keeps rivals on their toes with strong first quarter
Paris — On Wednesday, Louis Vuitton owner LVMH set a high bar for rival luxury goods companies trying to capitalise on Chinese demand for high-end handbags and clothing, with stronger-than-expected sales growth in the first quarter. The conglomerate, which owns other labels such as Christian Dior in fashion and Krug in Champagne, was boosted by a strong performance in its leather goods unit, in particular, while sales of spirits such as Cognac improved from a quarter earlier. Its performance bodes well for other companies that derive much of their profit from high-margin handbags, and which have proved a hit with consumers in recent years, such as Kering’s Gucci or Birkin bag maker Hermès. The group, which cited a “buoyant environment” at the start of the year, posted revenue of €12.5bn in the period, up 16% as reported. It rose 11% on a like-for-like basis, which strips out currency swings and the impact of acquisitions or disposals, beating analyst forecasts and marking an acceler...
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