* LVMH says "no way" will do business with Amazon
* Says strong demand from Chinese at home and abroad
* Q3 Organic growth ex-Donna Karan would have been 7 pct
By Astrid Wendlandt
Oct 11 Luxury goods group LVMH said
there was "no way" it would do business with Amazon
even though the Internet retailer was keen to take on more
Amazon currently sells mostly so-called "accessible luxury"
brands such as Michael Kors, Calvin Klein and Kate Spade, but
LVMH said it did not think it was an appropriate platform for
its luxury brands.
"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
Amazon has been growing its fashion, jewellery and watch
retailing in recent years but failed to attract heavyweight
luxury brands as they are concerned the U.S. retailer's product
presentation and discounts could damage their image.
LVMH and other luxury goods groups such as Chanel and
Richemont fought hard to obtain the right from the
European Commission in 2010 to refuse partnering with certain
websites, citing worries about pricing and counterfeits.
LVMH's shares jumped by as much as 5.7 percent on Tuesday
after the group reported much higher than expected third-quarter
sales late on Monday, driven by strong trading at its flagship
Louis Vuitton brand and revived demand from Chinese customers at
home and abroad.
LVMH's sales figures boosted investor sentiment towards the
luxury sector, which has been relatively bearish in recent
months, and lifted shares of peers such as Richemont, which
gained more than 3 percent on Tuesday, and Kering, up
There is concern that tourists will stay away from major
European luxury markets in the near future following recent
attacks, while an uncertain global economic outlook could also
keep demand subdued.
However, the group behind fashion brands Fendi, Dior and
Guerlain perfume, said sales in mainland China had improved to
"mid teens" in the third quarter from "mid single digits" in the
first half. "The Chinese customer (who represents one third of
LVMH sales) is doing very well," Guiony told investors.
Without the negative impact of phasing out the Donna Karan
brand, organic growth at the group's all-important fashion and
leather unit would have been more than 7 percent, rather than
the 5 percent reported, Guiony told investors.
LVMH's leading jewellery brand Bulgari had seen growth slow
down as 2015 had been a bumper year, he said.
LVMH shares, which have now risen more than 14 percent this
year, closed 4.5 percent higher valuing the group at 80.2
(Reporting by Paris Newsroom; Editing by Susan Fenton)