The world's biggest luxury company, LVMH, today reported an 11% jump in sales in the first quarter as buyers snap up watches, jewellery and high-end drinks after months of economic gloom.
Sales rose to €4.47 billion - higher than the €4.25 billion expected by analysts. This was thanks in particular to the Asian market, Moet Hennessy Louis Vuitton said.
Paris-based LVMH, which owns brands including Moet champagne, Louis Vuitton handbags and Dior perfume, was hit by the crisis last year, with its net profit falling by 13% in 2009 and sales slipping by 1%.
'All of the business groups recorded double-digit organic revenue growth,' the company said in a statement, adding that sales 'benefited from the end of destocking by distributors and from a recovery in final consumer demand'.
Wines and spirits sales, which were heavily affected by the crisis in 2009, rose by 18%, while watches and jewellery were up 33%. Overall sales in the fourth quarter of 2009 had risen by just 1%.
But the group said it was still 'taking into account the uncertainty of the strength of the economic recovery' and would concentrate on developing its brands, keeping costs in check and making selective investments.
