Bling is back as luxury company Louis Vuitton reports sales surge

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

Sales rose to €4.47 billion - higher than the 4.25 billion euros expected by analysts polled by Dow Jones Newswires, thanks in particular to the Asian market, Moet Hennessy Louis Vuitton said.

Paris-based LVMH, which owns brands including Moet champagne, 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".

Wines and spirits sales, which were heavily affected by the crisis in 2009, rose by 18 per cent, while watches and jewellery were up 33 per cent.

Overall sales in the fourth quarter of 2009 had risen by just one percent.

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.

On the stock exchange, LVMH topped the gainers, with its shares up 3.50 per cent at €91.80 in morning trade in an overall flat market.

Analysts at CM-CIC, a French investment group, said investors welcomed the company's strong sales performance, with the stock outperforming so far this year with a gain of 16 per cent.