When the luxury goods industry is worried about whether the Chinese market slows down and thus affects the global market, the luxury goods giant LVMH Group's good performance in the third quarter of the 2018 fiscal year passed some positive signals.
The LVMH Group, which owns luxury brands such as Louis Vuitton, Christian Dior, Celine, Givenchy, Bulgari, released its third-quarter results on October 9, local time. The best-performing fashion and leather goods division revenue increased 14% year-on-year to 4.46 billion euros. Under its leadership, the group's revenue increased by 10% year-on-year to 11.4 billion euros. In the nine months ended September 30, the LVMH Group recorded a total revenue of 33.1 billion euros.
According to the announcement issued by the LVMH Group, the good performance of the fashion and leather goods department is still driven by the most profitable Louis Vuitton. The group stressed that the brand's women's creative director Nicolas Ghesquière and men's creative director Virgil Abloh led Louis Vuitton's latest show to get a great response. At the same time, Christian Dior, which LVMH acquired last year, also strongly promoted the Group's revenue growth. Dior's recent strong return to the saddle bag also played an important role.
Celine's latest creative director, Hedi Slimane's debut during the Paris Fashion Week, is one of the hottest topics in the fashion world. The LVMH Group said in the announcement that "Celine's fashion show has been a Newchic Coupon great success and has produced a huge response."
Rogerio Fujimori, an analyst at RBC Capital Markets, said in a research report that the LVMH Group's third-quarter results were "reasonable." “Overall, this is another strong quarter for the LVMH Group, thanks to Louis Vuitton and Dior for the outstanding performance of the fashion and leather goods division,” Fujimori wrote in the report.
It is worth mentioning that China's luxury consumer market currently accounts for one-third of the global luxury goods market. Changes in the Chinese market have closely affected the global luxury market. Due to concerns about the slowdown in the Chinese market, LVMH Group's share price fell 3.7% on October 4, and the shares of Gucci's parent companies such as Kaiyun Group and Burberry of France fell.
The LVMH Group said in the announcement: "In the context of uncertain geopolitics and monetary policy, the LVMH Group will remain cautious and the Group will rely on the strength of its brand and talent team to further expand its leadership in the global luxury market in 2018. ."