DFS boosted by airport operations rather LVMH reports Asia slowdown

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EXTERNAL. LVMH Mo�t Hennessy Louis Vuitton�s (LVMH) Selective Retailing division, incorporating DFS Group and Starboard Vacation Services (plus domestic operations The Bon March� and Sephora), processed a +8% increase in organic cash (+5% on a reported basis) using the first nine months of the current year, to �6. 62 billion.

Woman DFS, in common with the group overall, has been affected by weakening demand for leathergoods and Cognac from Chinese dieters, driven by the government crackdown along lavish spending and official real gift giving.

Pro-democracy disputes in Hongkkong, which began this month, have dinged Chinese visitor and spending body shape, though any impact will not be read until the group's final-quarter results.

The girls noted: �DFS benefited from received airport activity while certain holidaymaker destinations suffered the repercussions of financial or perhaps a geopolitical changes. "

LVMH's commentary about a softening spend in The japanese mirror those of Burberry, the Britian's biggest luxury goods house, that typically earlier in the week noted "some softening" in sales growth right from Chinese consumers in the second quarter, both in and when travelling. Shares in felllow British luxury brand Mulberry slipped by -20% before a eleventh hour rally to -11% on his or her warning that pre-tax profit for all the full year to March 2015 would likely come in �significantly below accessible expectations. �

Perfumery chain Sephora continued to gain market share in big regions, with particularly strong development in the USA and the Middle East. That chain opened its first facilities in Indonesia and grew by going online sales across all regions.

LVMH posted overall revenue of �21. 40 billion, up by +4% (reported and organic). Faster development in Europe and the USA using the third quarter compensated for the collapse observed in Asia, the company reported.

LVMH revenue by business group Every single one of business groups grew revenues but still Wines & Spirits, which continued affected by destocking of Cognac makes by distributors in China. That division�s organic revenue declined with -3% to �2. 63 million. Hennessy performed well in the USA, the particular Champagne business was driven with strength in the American and Japan markets.

Fashion & Leather Stuff recorded organic revenue growth of +3%. Under new artistic director Nicolas Ghesqui�re, Louis Vuitton continued its develop and creative development. The group showcased the launch of the new Monogram collection, interpreted by six famed designers, as one of the highlights of the final quarter.

Loro Piana remained dedicated to its strategy of qualitative improvement, the group said, while Fendi along with C�line continued to expand a person's collections and their store networks. Others including Givenchy iPhone, Berluti and Kenzo also strengthened their positions.

That Perfumes & Cosmetics business masses recorded organic revenue growth of +8%. Parfums Christian Dior�s iconic lines of text performed well, in particular J�Adore along with Dior Addict, while the make-up groupe also contributed strongly.

Guerlain got boosted by the launch of new men�s fragrance L'Homme Id�al and the development success of its premium skincare area Abeille Royale. Fresh, Benefit create Up For Ever also enjoyed remarkable performances.

Watches & Jewellery taped organic revenue growth of +5% for all the first nine months of 2014, with Bvlgari driving acceleration using the jewellery segment in the third coint.

The group noted: �Watches continued to be depending the cautious purchasing behaviour for multi-brand retailers in an uncertain economy. �

The launch of the all new watch for women Lvcea by Bvlgari and the success of Hublot�s important lines were key highlights using the third quarter.

Looking to the future, the girls said: �In an uncertain global financial and financial environment, LVMH likely will continue its strategy focused on develop and targeted geographic expansion using the most promising markets.

�LVMH likely will rely on the power of its brands this can be talent of its teams to further prolong its global leadership in the pretty market in 2014. �

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