Bling is back as Louis Vuitton sales surge 11%

The world's biggest luxury company, LVMH, yesterday reported an 11 per cent jump in sales in the first quarter as buyers snap up watches, jewellery and high-end drinks after months of economic gloom.

Sales rose to €4.47 billion (Dh22.31bn) – higher than the €4.25bn expected by analysts polled by Dow Jones Newswires, thanks in particular to the Asian market, said Moet Hennessy Louis Vuitton.

Paris-based LVMH, which owns brands including Moet beverages, Louis Vuitton handbags and Dior perfume, was hit by the crisis last year, with its net profit falling by 13 per cent in 2009 and sales slipping by one per cent.

"All of the business groups recorded double-digit organic revenue growth," the company said in a statement, adding that sales "benefited from the end of destocking by distributors… and from a recovery in final consumer demand".

Sales of watches and jewellery were up 33 per cent. Overall sales in the fourth quarter of 2009 had risen by just one per cent.

But the group said it was still "taking into account the uncertainty of the strength of the economic recovery" and would concentrate on developing its brands, keeping costs in check and making selective investments.

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