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As Luxury Markets Bounce Back, LVMH Sees Record-setting 2010
Posted: February 4, 2011
Luxury company LVMH released its financial report for 2010, noting a 19% recorded increase in revenue in the past year, exceeding the €20 billion mark for the first time. All business groups saw excellent momentum in Europe, Asia and the United States. Revenue increased by 20% in the fourth quarter with organic growth rising 13%. This performance is in line with the favorable trends observed since the beginning of the year, and compares to the fourth quarter of 2009, which also grew.
Bernard Arnault, Chairman and CEO of LVMH, said, “2010 was a great vintage for LVMH. The quality of our products, the originality of our brands and the talent of our teams bolstered by the economic recovery allowed us once again to gain market share throughout the world. In 2011, LVMH intends to further strengthen its global leadership position in high quality products by relying on its sound long term strategy.”
Further LVMH highlights from 2010 include the company gaining further market share around the world, as well as continued rapid growth in Asia. It also saw strong results from DFS and Sephora, and momentum at Parfums Christian Dior due to the continued success of its iconic perfumes.
Specifically for the Perfumes & Cosmetics division, the company recorded the category as having revenue growth of 12% in 2010 and an increase in profit from recurring operations of 14%. Parfums Christian Dior benefited from the continued popularity of its iconic perfumes such as J’adore, Poison and Eau Sauvage, while maintaining focus on innovation. Other product categories enjoyed strong growth thanks to the performance of the new Rouge Dior lipstick range and the Capture skin care line. Guerlain benefited from the success of its new Idylle fragrance and the soundness of Shalimar, as well as its skin care line, Orchidée Impériale. The new Play for Her feminine fragrance from Parfums Givenchy was also very well received. Benefit and Make Up For Ever enjoyed outstanding momentum throughout the world.