From Your Personal Shopper in Paris: Excellent performance for LVMH in 2012

LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, 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, long-term strategy.”

Wines & Spirits: strong growth in vintages and prestige qualities

The Wines & Spirits business group 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. In addition to volume growth, improved product mix and a policy of adjusted price contributed to this excellent performance. 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. All maisons in this business group thus benefit fully from their value enhancing strategy, based on the image of their brands and the strength of their distribution network.

Fashion & Leather Goods: excellent performance from Louis Vuitton and other brands

The Fashion & Leather Goods business group recorded organic revenue growth of 7% in 2012. Profit from recurring operations increased by 6%. 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.

Perfumes & Cosmetics: excellent momentum

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’adore. Dior 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.

Watches & Jewelry: strong progress in iconic lines and development of industrial capacity

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: rapid growth thanks to its innovative product and service offering

The Selective Retailing business group 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.

Favorable outlook for LVMH in 2013

Despite an uncertain economic environment in Europe, LVMH is well-equipped to continue its growth momentum across all business groups in 2013. The Group will maintain a strategy focused on developing its brands by continuing to build up its savoir-faire, as well as through strong innovation and expansion in fast growing markets.

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.

From Your Personal Shopper in Paris: LVMH, 22% increase in revenue for the first nine months of 2012

LVMH Moët Hennessy Louis Vuitton,  recorded revenue of €19.9 billion for the first nine months of 2012, an increase of 22% on the comparable period in 2011. After taking into account the consolidation of Bulgari, as of 30 June 2011, and a positive currency impact, organic revenue grew by 10%.

The Group recorded a 15% rise in revenue for the third quarter. Organic revenue growth was 6%, a solid result in the current economic environment, particularly when compared to the strong performance in the same period of 2011. The US market continued to demonstrate momentum. In spite of a challenging economic environment, Europe and Asia also contributed to the third quarter performance. Louis Vuitton continues to gain market share throughout the world.

The Wines & Spirits business group recorded organic revenue growth of 12% for the first nine months of 2012. The Group’s champagne brands achieved a sustained increase in volume over the period. An improvement in product mix and the price increases announced at the start of the year also contributed to the progress made by the Champagne business. All geographic regions recorded increases with particularly strong advances in emerging markets. The Wine business benefitted from the rapid development of sparkling wines. Hennessy cognac continued to see strong momentum across all categories.

The Fashion & Leather Goods business group recorded organic revenue growth of 8% for the first nine months of the year. Louis Vuitton reported a double-digit rise in revenue, driven by the powerful appeal of its products and the unique experience offered to all clients at its stores, and further reinforcing its advance on the global market. The Shanghai opening of the first Maison Louis Vuitton in China and the launch of a number of collections in collaboration with the artist Yayoi Kusama marked some of the high points of the quarter. Celine achieved remarkably strong performance across all its markets and product ranges. Fendi undertook a targeted expansion of its distribution network. All other fashion brands continued to show improved performance.

The Perfumes & Cosmetics business group registered organic revenue growth of 8% for the first nine months of 2012. Christian Dior continued to show strong momentum underpinned by the growth of its iconic perfumes and the relaunch of Dior Addict, backed by a new publicity campaign. The makeup and skincare segments also contributed to the strong performance thanks to the Prestige range and the new Diorskin Nude products. Guerlain benefitted from the successful launch of La Petite Robe Noire and solid progress with its Orchidée Impériale skincare products. Givenchy benefitted from broadened distribution of its makeup range. Benefit continues to achieve strong growth thanks to its They’re Real mascara. Fresh opened its first store in the Chinese market.

The Watches & Jewelry business group recorded organic revenue growth of 7% for the first nine months of 2012. LVMH’s watch brands made further progress driven by their iconic ranges and innovation. The launch of TAG Heuer’s new Link Lady and Zenith’s Pilot range were among the highlights for the quarter. In Jewelry, the success of Bulgari’s Serpenti and B.Zero1 collections was confirmed as the brand pursued a very selective distribution strategy. Chaumet and Fred delivered good performance in their own boutiques.

The Selective Retailing business group achieved organic revenue growth of 14% for the first nine months of 2012. DFS continued to expand its presence in Hong Kong with the opening of its third Galleria in the city centre and establishing three new concessions at the airport which will be operational at the year-end. Sephora produced a remarkably strong performance, winning market share across all regions of the world. Its growth momentum remains strong with, notably, significant progress being made in China and Russia and the considerable success of its first store opening in Brazil. On-line sales in France and the United States saw particularly strong gains.

Outlook

Despite the background of an economic slowdown in Europe, LVMH remains confident in its outlook for 2012. The Group will continue to pursue its proactive strategy centered on innovation and targeted geographic expansion in the most promising markets. LVMH will rely on the power of its brands and the talent of its teams to further extend, in 2012, its global leadership position in luxury products.