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Asia and US boost LVMH sales

Asia and US boost LVMH sales
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LVMH has announced its revenue was up by 25 percent in the first three months of the year.

The world’s biggest luxury goods group credits particularly strong growth in Asia and the United States, as wealthy shoppers were unaffected by the economic downturn.

However the French company described the economic outlook for Europe as uncertain and so it will keep a tight control over costs.

Quarterly sales rose 14 percent on a like-for-like basis to 6.58 billion euros.

The strongest divisional growth was seen at its cosmetics retailer Sephora and shopping centres chain Dfs.

Growth was also spurred by unexpected strength in the Wine & Spirits division, several analysts said, due to an increase in both volume and prices. LVMH said volume in champagne rose by five percent, while Hennessy cognac rose nine percent.

The all-important Fashion & Leather goods division, which accounts for around a third of the company’s revenue and grew 12 percent on an organic basis for the quarter, came in slightly below some analysts expectations, however.