Thursday, January 31, 2013

EXCELLENT RESULTS FOR LVMH IN 2012 - UP 19%

Louis Vuitton Spring 2013 Ad Campaign



LVMH Moët Hennessy Louis Vuitton recorded revenue of €28.1 billion in 2012, an increase of 19% compared to  2011. 

This includes the integration of Bulgari as of June 30, 2011.

Organic revenue growth was 9%. All business groups saw excellent momentum in Europe,  Asia  and the United States. Louis Vuitton, in particular, once again recorded double-digit revenue growth during the year.

Revenue increased by  12% in the fourth quarter, compared to the same period in 2011, with
organic revenue growth of 8%. The last quarter saw a modest increase in growth compared to the third quarter of 2012.

Profit from recurring operations increased by 13% to  €5 921 million, a performance which is
even more remarkable when compared to the strong growth in 2011. Current operating margin
was 21% in 2012. Group share of net profit was €3 424 million, an increase of 12% compared to
2011.

Bernard Arnault, Chairman and CEO of LVMH, said:

"2012 was  another remarkable year for LVMH, especially in the context of the  economic slowdown in Europe. All of our  businesses demonstrated excellent momentum driven by innovation and  the  quality of their products, thereby strengthening their positions in traditional markets while  continuing to develop in new ones. Looking beyond the appeal of our brands, it is the talent of our teams and their motivation that  enables us to  so effectively execute our strategy. In 2013, LVMH intends to further strengthen its global leadership position in high quality products by relying on its sound, longterm strategy."

Highlights of 2012 include:

  • Profit from recurring operations close to 6 billion Euros
  • Further market share gains throughout the world
  • Strong momentum in the United States
  • Continued rapid growth in Asia
  • Strong progression in Wines & Spirits
  • Double-digit revenue growth and exceptional profitability at Louis Vuitton
  • Improved performance of other Fashion & Leather Goods brands
  • Remarkable year for Parfums Christian Dior which gained market share in a competitive 
  • environment   
  • On-going strengthening of the market positions of DFS and Sephora due to their innovative products and services
  • Excellent results for TAG Heuer and the integration of the first full year of Bulgari
  • Free cash flow of €2.5 billion

Revenue by Business Group
via LVMH

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Wines & Spirits 

Recorded organic revenue growth of 11%. Profit from recurring operations increased by 14%. Continuing the favorable trend for the wines and spirits market in 2011, demand remained strong in 2012. 

Champagne recorded a strong performance in its rosé and prestige vintages. Sparkling and still wines from Estates & Wines experienced strong new growth. Hennessy cognac saw a very good year for all its qualities and in all regions. Belvedere vodka enjoyed good momentum outside the U.S. while the single malt whiskeys Glenmorangie and Ardbeg recorded rapid increases in their key markets. 


Celine Autumn Winter 2012-13 Ad Campaign


Fashion & Leather Goods

The fashion and leather goods business group which recorded organic revenue growth of 7% saw an excellent performance particularly from Louis Vuitton.

Louis Vuitton, which had another record year, increased its lead over other artisanal brands of leather goods. With double-digit revenue growth, Louis Vuitton maintained its historic strategy based on the extraordinary quality of its products and its excellent distribution. The Maison continues to record an exceptional level of profitability in a context of sustained investment dedicated to strengthening its savoir-faire. 

The opening of its first dedicated jewelry boutique complete with its first Haute Joaillerie workshop at Place Vendôme in Paris and the reopening of the Maison Louis Vuitton in Shanghai are among the highlights of the year. 

Fendi continued the qualitative expansion of its distribution network. Its iconic handbag Baguette experienced a record year on its 15th anniversary. 

As the brand continues to strengthen its identity, Céline showed excellent performance in all its products and in all geographic areas. The performance of the other fashion brands continued to improve.

Natalie Portman for Miss Dior

Perfumes & Cosmetics

The Perfumes & Cosmetics business group recorded organic revenue growth of 8%. Profit from recurring operations increased by 17%. 

Parfums Christian Dior saw excellent performance driven by the strength of flagship lines, notably Miss Dior and J’adoreDior Addict Lipstick confirmed its leadership position in its main markets and the skin care line Prestige continued its sustained growth. 

Guerlain continued to see strong growth momentum attributed notably to the performance of its new fragrance La Petite Robe Noire. 

Parfums Givenchy saw strong growth in its makeup line due to broader distribution and the success of its mascara Noir Couture. Benefit, Make Up For Ever and Fresh continued their strong growth.

Rachel Weisz for Bulgari Autumn Winter 2012-13



Watches & Jewelry

The Watches & Jewelry business group recorded organic revenue growth of 6% in 2012. Profit from recurring operations rose 26% notably due the performance of Bulgari, consolidated as of 30 June 2011. 

LVMH watch brands experienced good momentum supported by many innovations and the excellent performance of their iconic models Carrera by TAG Heuer, King Power by Hublot and El Primero by Zenith

In Jewelry, Bulgari confirmed the success of its Serpenti and B.Zerol collections, enriched by new creations, and reinforced the quality of its distribution. 

Chaumet and Fred continue to develop their star collections.


Selective Retailing

The Selective Retailing business group saw rapid growth thanks to its innovative product and service offering and recorded organic revenue growth of 14% in 2012. Profit from recurring operations increased by 19%. 

Due to its strong commitment to the quality of its stores, DFS benefitted from momentum among Asian customers. Three major concessions were won in 2012 at Hong Kong Airport and the concession at Los Angeles Airport was renewed. The opening in Hong Kong of a third Galleria is also a key highlight of the year.

Sephora continued to achieve an excellent level of performance and made market share gains across all its regions. Online revenue is growing strongly. In Europe, new stores opened for the first time in Denmark and Sweden. In the United States, the renovation of several flagship stores in New York strengthened the appeal of the brand. Sephora continued its expansion in China while accelerating the renovation of its existing network. Its first stores were opened in the high potential markets of Brazil and India. 


Driven by the agility of its organization, the balance of its different businesses and geographic diversity, LVMH enters 2013 with confidence and has, once again, set an objective of increasing its global leadership position in luxury goods. 













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