LVMH reported that first-quarter sales rose 25 percent year on year to $8.636 billion (EUR 6.582 billion). On a comparable-store basis and using constant exchange rates, which LVMH defines as organic, sales improved 14 percent.
Revenue from the group’s watches and jewelry segment, which now includes Bulgari, rose to $827 million (EUR 630 million) from $342 million. The jewelry business recorded organic revenue growth of 17 percent in the first quarter of 2012. LVMH expanded its store network in Asia and the new watches presented at Basel were very well received, according to the retailer. LVMH noted that TAG Heuer’s Link Lady, Hublot’s early models made with its new Magic Gold and Zenith’s Pilot Aéronef were particularly hot items with shoppers. Bulgari experienced strong consumer demand for its Serpenti collection. Chaumet registered good growth in its Asian distribution network.
Sale of wines and spirits rose 22 percent to $1.21 billion and perfumes and cosmetics experienced growth of 12 percent to $1.18 billion. Fashion and leather goods sales, which represents the majority of the retailer’s revenue, rose 17 percent to $3.11 billion.
LVMH described the economic environment ”uncertain” in Europe, so the group will continue to focus its efforts on developing brands and keep strict controls on operating costs.