Total sales for the company during the quarter were €4.018bn, compared to €4.002bn for the corresponding period last year, an increase of 0.4 per cent.
Figures for the company’s perfume and cosmetics division were not so good, with reported sales falling by 8 per cent to €663m, compared to the same period last year, representing a drop of 11 percent in organic sales.
Luxury sales hit by downturn
Similarly poor performances were reported by the company’s wine and spirits division, where reported sales fell 16 per cent and it watches and jewelry division, which saw reported sales fall 27 per cent.
The division that saved the day was fashion and leather goods, which registered first quarter sales up 11 per cent on a reported basis to €1.598bn.
The overall company performance reflects the general trend amongst makers of luxury products, which, following years of unprecedented growth, have been hit by lower spending power caused by the onset of the worldwide economic crisis.
Difficult year-on-year comparison
The company said that its perfume and cosmetics division was partly due to the fact that huge revenue increases in the corresponding period last year had made comparisons difficult, a factor that was further exacerbated by retailers decreasing their stock levels.
The company added that demand remained strong in developing regions, and specifically made reference to rising sales in both Russia and China.
LVMH also chose this financial quarter to launch its new Christian Dior fragrance Miss Dior Cherie L’Eau and the foundation Diorskin, while the Guerlain brand with a premium skin care range, Orchidee Imperiale.