LVMH Quarter Growth Slowed Down

French luxury giant LVMH has released its first quarter earnings this year.

Overall, the group maintains a growth rate of around 10% in the European and American markets, but compared with the same period last year, growth in the Asian market and the Japanese market continued to decline, down 6% and 10% respectively.

Financial report shows that the first quarter of this year

An increase of 16% to 8 billion 320 million euros ($9 billion 390 million) is mainly due to the depreciation of the euro, because more than 70% of its products are sold outside the euro area.

But excluding the impact of exchange rate changes, acquisitions and asset sales, the company's first quarter sales grew 3% year-on-year, slowing from 5% in the fourth quarter of last year.

The main reason for this is the continued weakness in the wine and spirits business, as well as the slowdown in the fashion and leather sector business.

Jean-ClaudeBiver, chief executive officer of jewelry watch department, said.

It may be the new direction for the next development of the group.

before

Google Google and Intel In-tel will jointly develop Android smart watches to fight Apple's Watch.

But market expectations are not optimistic. Market research firm StrategyAnalytics analysis said that Watch will take over half of the smart watches market in 2015. Referring to the current high popularity of Watch, the three party cooperation between Tiger Heuer, Google and Intel is bleak.

In terms of fashion leather sector, although Louis Weedon LouisVuitton brand showed strong growth momentum in the first quarter by Monogram and other new product lines, overall growth momentum slowed again, organic growth was only 1%, less than 2% of previous market expectations, compared with the 9% growth in the same period last year.

According to Paris sources, after the LVMH released the latest quarterly results, the world's luxury Godfather and LVMH Group Chairman and CEOBernardArnault held a public speech for nearly an hour.

Arnault strongly advocates creativity, product quality and long-term thinking ability. It is essential that luxury industry should not despise marketing.

He said, "if we don't do marketing, we will not be able to base ourselves on the luxury market."