There’s a taste for luxury even in a downturn

LVMH, the world’s largest owner of luxury brands, beat forecasts with sales up 15 per cent to 16.3 billion euros (£14.2bn) in the nine months to September 30 as each of its divisions saw underlying growth of at least 10 per cent.

Third quarter like-for-like sales were up by 15 per cent.

Watches and jewellery were best sellers as sales jumped by 26 per cent, boosted by TAG Heuer’s Formula One watches and the recent acquisition of Italian jeweller Bulgari.

Fashion and leather rose by 15 per cent as Louis Vuitton’s leather ranges sold well, while new launches for Givenchy and Kenzo boosted perfumes and cosmetics in the last three months.

In wines and sprits, sales grew by 11 per cent, with good sales of Hennessy cognac in Asia and champagne and sparkling wine generally.

LVMH said that the excellent performance in the year so far confirmed its confidence for the remainder of 2011, adding that it will look to expand further in the most promising of its markets.

Concern about a possible slowdown in luxury good sales had been growing because of the global economic uncertainty and also weaker economic data coming out of China.

Last week, UK rival Burberry reaffirmed the strength of the top end of the retail market and played down fears over China, as it beat market forecasts with sales growth of 30 per cent in its first half.

LVMH’s other key brands include Dom Perignon and Krug champagne, Glenmorangie whisky, and fashion names Loewe, Kenzo and Thomas Pink.

LVMH opened up 25 of its brands to the public over the weekend. Couturiers like Christian Dior and Givenchy welcomed hundreds of visitors in Paris, while in France’s champagne region, top makers from Dom Perignon to Moet & Chandon opened their cellars.

Luis Vuitton has a shop in Leeds.