Increased Chinese spend lifts DFS' results
Published: 27 August, 2008
LVMH has revealed that the increasing spending power of Chinese travellers was the main factor behind a strong set of year-end financial results for DFS Group, one of the world's leading luxury retailers.
The French luxury goods group reported that its Selective Retailing division, which includes DFS Group along with Miami Cruiseline and beauty chain Sephora, posted a 10 per cent increase in profit in 2007 to reach US$439 million, and a 7 per cent rise in revenues.
Famous for its sophisticated merchandising and high level of customer service, DFS continues to be the first choice among liquor suppliers wanting to find an exclusive regional launchpad for new items such as Absolut 100, Chivas Regal 25 Year Old and Martell Château de Versailles VSOP.
"DFS is continuing to grow its market share in Asia against a backdrop of lower spending by Japanese travellers and a weak yen," said LVMH during a conference call on the results. "The growth in DFS is driven by an increase in Chinese travellers , new plans for Macau and opening the business in Vietnam in the final quarter [of the year]. These are major growth drivers going forward. Tourist flows to these two destinations are growing strongly."
Hong Kong-based DFS operates more than 150 airport shops across Asia -Pacific and North America, as well as 14 downtown "Gallerias " in locations such as Sydney, Guam, Los Angeles and Hawaii. A new DFS Galleria is scheduled to open in June at the Four Seasons hotel in Macau.