LVMH, the world’s biggest luxury goods group, had what it termed a “good start” to the year with organic sales rising by 3% compared to the same period in 2023. But the firm, which owns brands including Moët & Chandon, Krug, Veuve Clicquot, Hennessy and Château d’Yquem, saw actual sales fall by 2% to €20.7 billion. These figures mark the group’s weakest quarter since the surge of luxury spending at the end of 2021 as pandemic anxieties eased. The numbers were in line with analysts’ expectations. Perfumes and cosmetics and selective retailing, notably the Sephora chain, was the best performing sector. But once again the Moet Hennessy wines and spirits division was the weakest link. Lower sales Its organic sales were 12% below those in the same quarter last year, and, at €1.42 billion, 16% lower in total terms. That was due to what the company called “the normalisation of post-Covid demand” in the January to March quarter of 2023, when demand for Champagne was boosted by restocking by distributors. Cognac continues to struggle due to a “cautious attitude among retailers” notably in America, which has been driven by an unwillingness to order while interest rates remain at their present levels and consumers swing away from the category in favour of beer and less expensive spirits. The wine and spirit figures were also slightly skewed by results from the Minuty estate of Provencal roses being included in the first quarter accounts for the first time. LVMH’s commentary on the
This Article was originally published on The Drink Business - Champagne
