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By
Reuters
Published
Apr 22, 2009
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LVMH Q1 like-for-like sales fall 7 pct

By
Reuters
Published
Apr 22, 2009

PARIS, April 22 (Reuters) - LVMH (LVMH.PA), the world's biggest luxury group, on Wednesday posted a 7 percent drop in comparable first-quarter sales, hit by sharp declines at its wines, spirits, watches and jewellery divisions. The group, which owns Dom Perignon champagne and fashion houses Louis Vuitton, Celine and Fendi, made revenues of 4.018 billion euros ($5.19 billion) in the three months to March 31, slightly below expectations of 4.125 billion euros from a Reuters poll.


Louis Vuitton boutique on the Champs-Elysées in Paris

Like-for-like wine and spirit revenues dropped 22 percent to 540 million euros while comparable sales from watches and jewellery fell 41 percent to 154 million euros during the first quarter.

However, the French group's fashion and leather goods operations saw a 4 percent rise in comparable sales to 1.6 billion euros.

Earlier on Wednesday, LVMH denied it was in talks to sell its wine and spirits unit after the Daily Telegraph reported that Diageo Plc (DGE.L), the world's biggest alcoholic drinks group, was in the early stages of a 12-billion-euro bid.

LVMH's trading update came after Gucci Group, part of PPR (PRTP.PA) and owner of fashion brands Yves Saint Laurent and Stella McCartney, on Tuesday posted a 3.4 percent drop in like-for-like first-quarter sales. ($1=.7738 Euro)

(Reporting by Astrid Wendlandt, Editing by Sudip Kar-Gupta)

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