Organic growth slows down
The luxury group managed to achieve a 3 % growth when exchange rates are excluded, which is not bad, but still not as good as the 5 % increase in 2014. Its leatherwear branch, with Louis Vuitton as its main brand, grew 1 % (compared to 4 % in 2014’s final quarter).
The watch and jewelry division, with Bvlgari as main brand, managed a 7 % organic growth (compared to 3 % the previous quarter). The “selective retailing” branch (containing tax-free and the Sephora perfume chain) grew 5 %, while the perfume and cosmetics branch (containing Dior, Guerlain and Givenchy) added another 6 %.
The only downside was the liquor division, as champagne, brandy and whisky sales dropped 1 % in this year’s first quarter. The Chinese anti-corruption legislation is still a hindrance to brands like Moët & Chandon, Dom Pérignon and Glenmorangie: Chinese businesses used to hand out huge gifts, usually luxury products, recently until a new law made it much harder to do so. Only Hennessy established some growth: the brandy performed well in the American market.
