LVMH over LVMH. The largest luxury group in the world exceeds its own expectations by performing better then supposed by financial analysts and puts in writing the awareness that, at least for its 70 brands, the fear of a slowdown within the high-end goods’ market isn’t as realistic as it seemed, most of all in China. LVMH closed the first quarter of 2019 with a total revenue of 12.538 billion euro, meaning a 16% increase at current rates, while the increment was of 11% at constant rates, in comparison to 2018. This result was above the expectations of the analysts, that expected an 8.8% increase. The fashion and leather goods’ segment was the one pushing sales up the most, with an increase of 20% (15% organically) and revenue of 5.111 billion euro. The group defined the performance of Louis Vuitton as “exceptional”, so much in fact that that “a new leather goods laboratory capable of hosting 500 employees was opened in France to satisfy the growing demand, the company is facing, as well as limiting the decrease of safety stock. Additionally, says the company, “many new projects are underway”. Other companies, such as Christian Dior Couture also performed well (Bloomberg says “thanks to its sneakers”). “Fendi, Loewe and Berluti are rapidly growing. Loro Piana’s shoes collection also did well”, states the group in a financial note spread yesterday late afternoon.
Meanwhile, LVMH sued Lanvin, as the latter has allegedly hired its new creative director, Bruno Sialelli, when he was still under a non-compete agreement he had signed with Loewe. According to indiscretions published by wwd.com, Sialelli could have, allegedly, been able to started working for another brand at the beginning of June, while Lanvin nominated him on January 21st, to do its show on the catwalk the following month. The first hearing will be held in court on June 14th in Paris, where the controversy will be heard and resolved.