“We believe the business of Amazon does not fit with LVMH full stop and it does not fit with our brands,” LVMH Chief Financial Officer Jean-Jacques Guiony told investors in a conference call on Tuesday, after the group announced unexpectedly robust quarterly sales. “There is no way we can do business with them for the time being.”
“Luxury brands prefer to have more control over how their products are displayed and marketed. The company is doing well enough without Amazon, reporting that this quarter’s sales are up, particularly in mainland China,” Guiony added.
Amazon has been growing its fashion and accessories business over the past few years, but has not been able to attract bigger luxury brands, mostly because the brands feel that discounts by e-tailers will hurt their image.
LVMH’s Sales Rise
According to a Bloomberg report: LVMH shares soared after its sales of luxury goods beat analyst estimates, proving its resilience to an industry slowdown and giving a boost to struggling competitors.
The stock closed up 4.5 per cent to 164. 10 euros Tuesday in Paris, after gaining as much as 5.8 per cent, the highest price since the Nov. 13 Paris terrorist attacks that provoked a drop in tourism and demand for luxury goods.
LVMH said better results in Asia boosted sales growth at its biggest segment, fashion and leather goods, to 5 per cent, the fastest pace in more than a year. Revenue from perfumes and cosmetics also bested estimates as Louis Vuitton introduced seven namesake fragrances.
The company said in a statement on Monday that its revenue totaled €26.3 billion ($29.3 billion) in the first nine months of the year.
LVMH’s fashion and luxury-goods division—its largest unit, which includes such brands as Celine and Marc Jacobs—grew only 1 per cent over the period to €9 billion.