LVMH reports 6 percent rise in FY14 revuenes

LVMH Moët Hennessy Louis Vuitton, one of the leading luxury products group, recorded revenue of 30.6 billion euros (35 billion dollars) in 2014, representing an increase of 6 percent over the previous year. Organic revenue growth was 5 percent. In the fourth quarter, revenue increased by 10 percent compared to the same period of 2013, while organic growth was 5 percent.

Revenue in all business groups increased with the exception of wines & spirits which continued to be affected by the destocking of distributors in China. The Group maintained strong momentum in the United States. Europe demonstrated good resilience despite the economic environment, while Asian countries displayed mixed trends. Profit from recurring operations reached 5,715 million euros (6,555 million dollars), resulting in an operating margin of 19 percent. Group share of net profit was 5, 648 million euros (6,470.8 million dollars).

Commenting on the positive performance, Bernard Arnault, Chairman and CEO of LVMH, said, “The 2014 results confirm the capacity for LVMH to progress despite economic and currency uncertainty. Revenue and net profit reached new record levels. The year was also marked by the arrival in the Group of Loro Piana, which saw a good performance. LVMH reached an agreement with Hermès and disposed of its stake in this company, in the form of a distribution to our shareholders. In 2014, all our Maisons demonstrated outstanding flexibility.”

The fashion & leather goods business group recorded organic revenue growth of 3 percent in 2014. Profit from recurring operations reached 3, 189 million euros (3,657.7 million dollars). For Louis Vuitton, 2014 was characterised by strong creative momentum, dominated by the enthusiastic reception of Nicolas Ghesquière’s first runway shows and of the new products. The celebration of the Monogram canvas as revisited by six leading designers and the inauguration of the Avenue Montaigne flagship store in Paris are among the highlights of the last quarter. 2014 marks the first year of Loro Piana’s integration into the business group. Fendi experienced strong growth driven by the success of its iconic lines. Celine continued its remarkable performance. Other fashion brands such as Givenchy, Kenzo and Berluti experienced accelerated growth while Donna Karan and Marc Jacobs are in a redeployment phase.

LVMH reports 6 percent rise in FY14 revuenes

The perfumes & cosmetics business group significantly outperformed the market with organic revenue growth of 7 percent. Profit from recurring operations amounted to 415 million euros (476 million dollars). The business group’s momentum was boosted by continuous innovation and sustained investments. Iconic perfumes of Christian Dior, J’adore, Miss Dior and Dior Homme continued to demonstrate their exceptional appeal. The make-up segment also contributed to the good performance of the maison, notably Dior Addict Fluid Stick. Guerlain benefited from the successful launch of its new fragrance L’Homme Idéal and the success of its high-end skincare range Abeille Royale. Benefit confirmed its strong global momentum and is ranked as the leading make-up brand in the UK. Fresh and Make Up For Ever continued to strengthen their positions.

The watches & jewelry business group recorded organic revenue growth of 4 percent. Profit from recurring operations reached 283 million euros (324.6 million dollars). While jewelry revenue showed remarkable momentum, watches were penalized by the cautious purchasing behaviour of multi-brand retailers in an uncertain economic environment. Bvlgari recorded strong growth driven by the success of its iconic lines and enhanced its watch collections with its new Lvcea watch for women. TAG Heuer refocused on its core offering, adapting its organization accordingly.

The selective retailing business group recorded organic revenue growth of 8 percent. Sephora continued to gain market share. Performance was excellent especially in North America, the Middle East and Asia. Online sales grew significantly, supported by innovative mobile features. The store network expansion continued with the company establishing presence in Indonesia and Australia while several flagship stores, such as the Champs-Elysées and Dubai Mall were renovated. New brands enhanced the product offering, bringing a diversity that never ceases to keep Sephora ahead in beauty innovation. Faced with a complex situation in Asia, particularly relating to currency and geopolitical developments, DFS continued to focus on optimizing its offer and deploying its loyalty program.

At the Annual Shareholders’ Meeting on April 16, 2015, LVMH will propose a dividend of 3.20 euros (3.67 dollars) per share, an increase of 3 percent. An interim dividend of 1.25 euros (1.43 dollars) per share was paid on December 4 of last year and the balance 1.95 euros (2.24 dollars) per share will be paid on April 23, 2015.

 

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