1Q17 Results

LVMH reported that 1Q17 revenues increased by 15% year over year, to €9,884 million, ahead of the consensus estimate of €9,521 million. Revenues jumped 13% year over year on an organic basis.

Performance by Segment

In the company’s Wines & Spirits business, organic revenues increased by 13% year over year in the quarter. Champagne volumes increased by 7% year over year and Hennessy cognac volumes increased significantly. In Fashion & Leather Goods, total organic revenues increased by 15% year over year. Louis Vuitton and Fendi achieved a good start to the year, and Céline, Kenzo, Loewe and Berluti showed progress. In the Perfume & Cosmetics business, organic revenues increased by 12% year over year. Parfums Christian Dior reported good growth and Guerlain launched a new women’s fragrance called Mon Guerlain during the quarter. Parfums Givenchy benefited from the success of lipstick lines, which saw rapid development in Asia. In addition, the Kat Von D brand launched exclusively in January 2017 at Sephora in France. In Watches & Jewelry, organic revenues increased by 11% year over year. Bulgari continued to gain market share and TAG Heuer successfully launched its new Connected Modular 45 watch. In Selective Retailing, organic revenues increased by 11%. Sephora continued to gain market share globally and recorded double-digit revenue and profit growth for the quarter.

Guidance

The company did not provide specific numerical guidance for FY17. Analysts estimate that LVMH will generate €40,276 million in net sales in FY17, along with €7,722 million in EBIT and EPS of €9.15. Consensus estimates imply FY17 year-over-year revenue growth of 7.1%, EBIT growth of 9.9% and EPS growth of 13.7%.