China Woes Weigh On Moët Hennessy Sales Through First Three QuartersOctober 15, 2014
Moët Hennessy has reported a 7% drop in sales to €2.6 billion ($3.3b) for the nine months through September, marking the first three quarters of its fiscal year. Moët Hennessy’s sales for the period dropped by 3% on an organic basis, which the Paris-based marketer attributed to continued distributor destocking in the Chinese market, where a crackdown on government-related gift-giving has stunted growth for upscale brands like Hennessy Cognac.
On the other hand, Moët Hennessy said its core Cognac brand saw “excellent momentum in the United States” over the past nine months, and added that its Champagne business—including Moët & Chandon, Veuve Clicquot and Krug among others—is also performing well, driven by strong sales in the U.S. and Japan. Moët Hennessy’s parent company, luxury goods giant LVMH, posted overall sales up 4% to €21.4 billion ($27.3b) for the nine-month period.
Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.