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LVMH Reports Record Revenue of €19.9 Billion
Posted: October 15, 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 integration of Bulgari, as of June 30, 2011, and a positive currency impact, organic revenue grew by 10%.
The company recorded a 15% rise in revenue for the third quarter, with organic revenue growth was 6%, a good performance in the current economic environment, particularly when compared to the strong performance in the same period of 2011. The U.S. market continued to demonstrate solid momentum, and in spite of a mixed business environment, Europe and Asia also contributed to the third quarter performance.
LVMH’s perfumes and cosmetics business group registered organic revenue growth of 8% for the first nine months of 2012, for revenue of €2,625 million for the period. 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 skin care segments also contributed to the strong performance thanks to the prestige range and the new Diorskin Nude products. Guerlain benefited from the successful launch of La Petite Robe Noire and solid progress with its Orchidée Impériale skin care products, and Givenchy benefited from broadened distribution of its makeup range. Benefit also continues to achieve strong growth thanks to its They’re Real mascara, and Fresh opened its first store in the Chinese market.
The company's selective retailing business group, which includes Sephora, 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 center and establishing three new concessions at the airport, which will be operational at the year-end. Sephora produced a remarkable 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. Additionally, online sales in France and the United States saw particularly strong gains.
In regard to its financial outlook, despite the background of an economic slowdown in Europe, LVMH remains confident in its outlook for 2012. The company will continue to pursue its proactive strategy centered on innovation and targeted geographic expansion in the most promising markets, relying on the power of its brands and the talent of its teams to further extend, in 2012, its global leadership position in luxury products.