Improved Revenue Trends for LVMH in the Third Quarter

Mon Oct 19, 2009 12:35pm EDT

* Reuters is not responsible for the content in this press release.

PARIS--(Business Wire)--
LVMH Moët Hennessy Louis Vuitton, the world`s leading luxury products group,
achieved revenue of €11.9 billion in the first nine months of 2009, comparable
with the same period in 2008. The Group delivered a resilient performance in
Europe and continues to show strong momentum in Asia, particularly in China. 

The revenue reduction of only 3% in the third quarter of 2009, at constant scope
and exchange rates, is attributable essentially to the continued de-stocking by
distributors for our businesses that do not sell directly to their final
customer. The third quarter reflects an improvement from the trends seen earlier
in the year, implying that the end of this phenomenon may be approaching. In the
third quarter, all business groups recorded better performances than in the
first half. This was notably the case for Wines & Spirits and Watches & Jewelry.

With a double-digit increase in its revenue, Louis Vuitton continues to deliver
an exceptional performance and strengthen its leading position. 

By business group, revenue progress was as follows:

 In EUR Millions                      First nine    First nine    Variation 2009 / 2008           
months of    
months of    
First nine months              
                                      2009          2008          Reported            Organic*  
 Wines & Spirits                      1 761         2 038         - 14 %              - 18 %    
 Fashion & Leather Goods              4 537         4 239         + 7 %               + 1 %     
 Perfumes & Cosmetics                 1 971         2 081         - 5 %               - 7 %     
 Watches & Jewelry                    533           656           - 19 %              - 28 %    
 Selective Retailing                  3 167         3 005         + 5 %               -         
 Other Activities and eliminations    (23)          (60)          ns                  ns        
 Total                                11 946        11 959        -                   - 6 %     
 * with a comparable structure and constant exchange rates                                              

In Wines & Spirits, destocking by distributors impacted revenue in the first
nine months. However, there was a notable improvement in performance in the
third quarter. Champagne continued to be the most negatively affected, while
Hennessy cognac had a strong performance in emerging markets and recorded an
improvement in the United States. 

Fashion & Leather Goods achieved revenue growth of 7% for the first nine months
of the year. Louis Vuitton further strengthened its position with double-digit
revenue growth in the period. Its store network continues to expand in China,
where the brand performed exceptionally well. A new store will be inaugurated in
Mongolia. The leather goods line Damier Graphite continues to grow. The first
Louis Vuitton fine jewelry collection was recently launched and has been widely
applauded by its clientele. The business of many of the fashion brands was
negatively impacted in the third quarter by the de-stocking at department
stores. The Spring-Summer 2010 collections, particularly at Céline, were very
favorably received. 

In Perfumes & Cosmetics, Christian Dior continued to benefit from the excellent
performance of J`Adore and successfully launched its new lipstick Sérum de
Rouge. Guerlain enjoyed the strong debut of its new feminine fragrance Idylle.
At Givenchy, Uma Thurman is the new face of Ange ou Demon. Benefit continued to
show good momentum and successfully entered the perfume market and Make Up For
Ever saw very strong growth. 

The Watches & Jewelry business group recorded a revenue decrease in the first
nine months of 2009 due to de-stocking by distributors. In a still challenging
environment, TAG Heuer is winning market share, notably in the United States,
and has focused on its iconic lines, such as the automatic version of Aquaracer
500 and new models in the Monaco line. Hublot showed a good level of resilience
despite the crisis. Montres Dior successfully launched the Mini D. Chaumet saw
good growth at its own retail stores in the third quarter. 

The Selective Distribution business group recorded revenue growth of 5% in the
first nine months of 2009. In a difficult environment for international travel,
DFS performed solidly in its Asian markets. The recent opening of the second
Galleria in Macao strengthened the Group`s presence in destinations frequented
by Chinese tourists. Sephora continued to expand its store network and recorded
revenue growth due to its increasingly diverse offering and range of innovative
services. Sephora increased its market share in Europe and the United States and
confirmed its strong potential in Asia and the Middle East. 


In the current environment still impacted by the crisis in many regions of the
world, the Group will continue to pursue its proactive strategy of focusing on
innovation and targeted investments in key markets. LVMH will rely on the appeal
of its brands and the talent of its teams to, once again in 2009, increase its
global leadership position in luxury products. 

Regulated information related to this press release is available on our internet

About LVMH

LVMH Moët Hennessy Louis Vuitton is the world's leading luxury goods group. The
Group is represented in Wines and Spirits by a portfolio of brands that includes
Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Château
d'Yquem, Hennessy, Glenmorangie, Ardbeg, Belvedere Vodka, Chopin, 10 Cane,
Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Green Point, Cape
Mentelle, Newton. 

Its Fashion and Leather Goods division includes Louis Vuitton, the world's
leading luxury brand, as well as Celine, Loewe, Kenzo, Givenchy, Thomas Pink,
Fendi, Emilio Pucci, Donna Karan, Marc Jacobs, Berluti, StefanoBi as well as
eLUXURY, the authoritative online source for luxury goods on the Internet. LVMH
is present in the Perfumes and Cosmetics sector with Parfums Christian Dior,
Guerlain, Parfums Givenchy, Parfums Kenzo, Perfumes Loewe as well as other
promising cosmetic companies (BeneFit Cosmetics, Make Up For Ever, Acqua di
Parma and Fresh). LVMH is also active in selective retailing through DFS,
Sephora in Europe and the United States, Le Bon Marché and la Samaritaine.
LVMH's Watches and Jewelry division comprises TAG Heuer, Chaumet, Christian Dior
Watches, Zenith, Fred, Hublot and De Beers Diamond Jewellers Limited, a joint
venture created with the world`s leading diamond group. 

"Certain information included in this release is forward looking and is subject
to important risks and uncertainties and factors beyond our control or ability
to predict, that could cause actual results to differ materially from those
anticipated, projected or implied. It only reflects our views as of the date of
this presentation. No undue reliance should therefore be based on any such
information, it being also agreed that we undertake no commitment to amend or
update it after the date hereof."


LVMH - Revenue by business group and by quarter

First nine months 2009

 (Euro millions)    Wines &     Fashion &         Perfumes &     Watches &     Selective     Other Activities     Total   
Leather Goods    
& Eliminations              
 First quarter      540         1 598             663            154           1 085         (22)                 4 018   
 Second quarter     539         1 390             622            192           1 042         8                    3 793   
 Third quarter      682         1 549             686            187           1 040         (9)                  4 135   
 Total revenue      1 761       4 537             1 971          533           3 167         (23)                 11 946  

First nine months 2008

 (Euro millions)    Wines &     Fashion &         Perfumes &     Watches &     Selective     Other Activities     Total   
Leather Goods    
& Eliminations              
 First quarter      640         1 445             717            211           1 011         (22)                 4 002   
 Second quarter     652         1 323             645            206           979           (8)                  3 797   
 Third quarter      746         1 471             719            239           1 015         (30)                 4 160   
 Total revenue      2 038       4 239             2 081          656           3 005         (60)                 11 959  

LVMH Moët Hennessy Louis Vuitton
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