LVMH Moët Hennessy Louis Vuitton posts steady rise in organic growth

In less than a month from now, luxury goods maker LVMH Moët Hennessy Louis Vuitton will be announcing its decision on payment of interim dividend. The French conglomerate had posted an increase of six percent in organic growth sales for the third quarter (Q3) ended September 2016, up from three percent in Q1 and four percent in Q2, while overall sales came in at €9,138 million.

The organic growth was led by perfumes and cosmetics segment that rose 10 percent, while the watches and jewellery segment grew by just two percent.

For the nine-month period, the company's sales stood at €26,326 million, up four percent from €25,288 million in the corresponding period last year.

From an organic revenue growth perspective for the first nine months of calendar year 2016, the segments showed divergent trends.

The wines and spirits business group grew seven percent, while the fashion and leather goods segment rose two percent. Its perfumes and cosmetics revenues increased eight percent and the watches and jewellery posted four percent growth, according to the company.

Curiously, the company is not doing well in its domestic market, France.

"Asia, excluding Japan, showed a significant improvement during the quarter. The United States remains well positioned, as does Europe, with the exception of France which continues to feel the impact of a decline in the number of tourists," according to LVMH statement.

At around 7.10 pm (IST), the share price of LVMH was trading at €163.45 per share.