Judging by LVMH's (FR: MC.) first-quarter performance, concerns over a potential slowdown in Chinese growth don't seem to be holding back demand for luxury goods in Asia. Strong growth in the region – which accounted for almost a third of group sales – drove group organic sales up 13 per cent over the first three months. The Louis Vuitton owner's watches and jewellery division led the way, with revenue up a fifth.
Its first-quarter performance was ahead of analyst forecasts and evenly spread across its businesses, with all segments reporting double-digit revenue growth. Much of the demand came from China, which buoyed several other luxury retail group stocks on results day. Growth from e-commerce is also an emerging opportunity, as luxury brands have traditionally relied on in-store sales the maintain product exclusivity. Digital innovation and widening customer access is something LVMH chief executive Bernard Arnault hopes will help the conglomerate stay on top. The digital landscape is even influencing products themselves, as designer branded iPhone and tablet cases prove increasingly popular.
