LVMH on Monday reported that first quarter revenue rose 10% to €10.9 billion ($13.5 billion by current conversion rates), with organic growth (comparable structure and exchange rates) of 13% year over year. Asia, the United States and Europe all "experienced good growth," according to a company press release.
By segment, first quarter organic revenue in Fashion & Leather Goods rose 16%, in Perfumes & Cosmetics rose 17% and in Watches & Jewelry 20%, the company also said.
In its Selective Retailing segment, which includes Sephora, organic revenue rose 9% in the quarter, or 16% excluding the termination of its Hong Kong International Airport concession.
It was about a year ago that the Parisian luxury retail powerhouse warned investors that it likely wouldn't be able to continue to pull off the large boosts in revenue and sales that it had produced all year. But its first quarter demonstrated the company's strengths in several areas of upscale retail.
In addition, among its best performers in the quarter was perhaps its least upscale brand: Sephora continued to gain market share globally, and online sales in particular are growing "rapidly," the company said.
That's partly a reflection of a healthy global economy, although there may be headwinds coming down the pike. Consumers may be saving some of their tax benefit as the personal savings rate ticked higher in February to 3.4% from 3.2% in January, and consumer credit standards at the nations' banks look to be tightening, noted Retail Metrics Presdient Ken Perkins in an email to Retail Dive. Plus, economic uncertainties ushered in by talk of tariffs and trade wars may be interrupting consumer confidence, especially among higher income shoppers with more at stake in the stock market, some experts say.
Still, at the moment LVMH shows few signs of a slowdown, and on Monday the company said it would continue to benefit from "the buoyant environment of the beginning of this year, albeit marked by unfavorable exchange rates and geopolitical uncertainties."