- 2024-04-16
- 阅读量：3951
- 来源｜Cosmetic Business Online
- 作者｜Shi Run Mei
Continue to pursue a strategy focused on brand development.
On April 16, French luxury giant LVMH Group released its first quarter 2024 financial results. The financial report shows that LVMH recorded revenue of 20.7 billion euros (about RMB 159 billion) in the first quarter of 2024, down 2% year-on-year, while organic revenue increased by 3%."The Group has started the year well, despite a geopolitical and economic environment that remains uncertain", LVMH said.
By region, Europe and the U.S. continued to grow in the quarter; Japan recorded the highest growth across all regions, with double-digit growth; and the rest of Asia, excluding Japan, was impacted by the resumption of offshore travel with a decline in results, although it also reflected strong growth in spending by Chinese consumers in Europe and Japan.
● From LVMH's financial report
In terms of market share, most regions remained unchanged except Japan, which increased its share by two percentage points year-on-year to 9%, while Asia outside Japan declined by three percentage points to 33%. Japan remains one of the fastest-growing featured destinations for Chinese travelers due to the positive impact of Chinese shopping abroad, which has led to a negative impact on Asian markets outside of Japan. The market in Europe (regions other than France) grew by 1 percentage point, while the market share in the USA and other regions remained unchanged.
01
Beauty division up 7% with new fragrance products performing well
By business, the perfume and cosmetics division grew 7% organically to €2.182 billion (RMB 16.772 billion); boutique retail revenues amounted to €4.175 billion (RMB 32.091 billion), with an organic growth rate of 11%. Wine and spirits division, watches and jewelry division declined, of which the wine and spirits division declined by the highest rate of 12%. The Fashion & Leather Goods division grew 2% organically.
● From LVMH's financial report
The Fragrances & Cosmetics segment delivered organic revenue growth driven by a strong innovation drive and a selective distribution strategy.Christian Dior Christian Dior, Guerlain Guerlain, Parfums Givenchy all achieved good results.
Among them, Christian Dior Christian Dior maintained its strong growth momentum. Its iconic fragrances Sauvage, J'adore and Miss Dior continued to perform well, with the launch of the new versions of these fragrances also achieving significant results. In makeup, the relaunch of Rouge Dior, and the Capture skincare line also contributed to Christian Dior's rapid growth.
Guerlain was boosted by strong demand for the Aqua Allegoria fragrance, in addition to the launch of a new version of the Aqua Allegoria perfume, Florabloom, a new cream, Abeille Royale, and the relaunch of the Teracotta make-up making a strong contribution to the brand.
Parfums Givenchy was boosted by the expansion of L'Interdit, and Maison Francis Kurkdjian achieved solid growth driven by its iconic Baccarat Rouge 540.
It is worth mentioning that on April 1, Fenty Beauty officially entered the offline market in mainland China through Sephora, boosting the brand's layout in the Asian market.
02
Boutique retail achieves highest organic growth
Select Retail segment organic revenue grew 11% in the first quarter. Sephora again achieved significant growth, which remained particularly strong in North America, Europe and the Middle East. Sephora continued to gain market share, particularly in North America, where the store network continued to expand.
DFS's business activity remains below pre-2019 outbreak levels, with only a partial recovery in international tourism in Europe and at its flagship destinations in Hong Kong and Macau, although strong performances have been seen in Okinawa and at U.S. airports. In addition, DFS and Shenya Group recently held a signing ceremony in Sanya, where the two companies will join forces to build Sanya's first world-class luxury retail and leisure destination, the DFS Defiance Yalong Bay project, which is slated to begin operations in 2026.
● DFSDFS Yalong Bay Project Rendering
The LVMH Group said it began the year vigilant and confident in an uncertain geopolitical and economic environment. The Group will continue to pursue a strategy focused on the development of its brands, driven by a sustained policy of innovation and investment, as well as a constant quest for quality, demand and distribution. In addition, the Group will rely on the talent and dynamism of its teams, the diversity of its businesses and the good geographical balance of its revenues to further consolidate its global leadership in the luxury sector in 2024.
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