LVMH Moët Hennessy Louis Vuitton (LVMH) recorded revenue of €29.1 billion in 2013, an increase of 4% over the previous year. Organic revenue growth was 8%. The company maintained good momentum in the U.S. and Asia, and continued to grow in Europe, despite the challenging economic environment. And with organic revenue growth of 8%, the fourth quarter performance was in line with the trends seen in the first nine months of the year.
Profit from recurring operations rose to €6.02 billion, an increase of 2% over the strong growth recorded in 2012. Current operating margin reached 21%, and group share of net profit was €3.43 billion, in line with 2012 which included a special dividend.
Bernard Arnault, chairman and CEO of LVMH, said, "2013 saw another excellent performance from LVMH despite exchange rate volatility and slower growth in the European markets. Profit from recurring operations exceeded €6 billion for the first time. A significant event during the year was the acquisition of Loro Piana, a company famous for its unrivaled work with cashmere and rare textiles, and with which we share the same values of family and craftsmanship. All our brands have proven to be exceptionally dynamic. 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 2014, LVMH intends to further strengthen its global leadership position in high quality products by relying on its sound, long-term strategy.”
For the company’s perfumes and cosmetics business group, LVMH recorded revenue of €3.71 billion for 2013, a 3% reported rise and 7% organic rise over 2012’s €3.61 billion in revenue. This result outperformed the market. Parfums Christian Dior continued its momentum and gained market share with the continued vitality of flagship lines like J’adore, which strengthened its market leadership notably in France, and Dior Homme, the international success of Rouge Dior; and the development of the skin care line Prestige. Guerlain continued to grow, supported by its fragrance La Petite Robe Noire and the rapid progress of Orchidée Impériale. Benefit recorded a further year of strong growth, and Make Up For Ever and Fresh both achieved particularly strong performances in Asia. The inauguration of the Hélios research centre at Saint-Jean-de Braye and the reopening of Guerlain’s iconic boutique at 68, Champs-Elysées were some of the major highlights of the year.
And LVMH’s selective retailing business group recorded organic revenue growth of 17% in 2013, up to €8.93 billion (revenue in 2012 was €7.87 billion). Profit from recurring operations increased by 6%. DFS recorded further strong sales increases, notably reflecting the first full year’s integration of three new concessions from the end of 2012 at Hong Kong International airport – each having been the focus of significant investment in upgrading works. The destinations of Hong Kong and Macau maintained strong commercial momentum while the weakness of the Yen reduced the spending power of Japanese travellers, notably in Hawaii. And Sephora continued to achieve an exceptional performance and gained market share across all its regions. Online revenue is growing well. Innovation, increased personalization of customer relations, and strengthening of service offerings, both in store and online, are at the core of Sephora’s strategy. Sephora’s exclusive offering has been notably enhanced by the new Marc Jacobs cosmetics line. Sephora continues to expand and upgrade its distribution network around the world and opened its first store in Thailand, a new territory.
Despite an uncertain economic environment in Europe, LVMH is well-equipped to continue its growth momentum across all business groups in 2014. The company will maintain a strategy focused on developing its brands by continuing to build on their 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 2014 with confidence and has, once again, set an objective of increasing its global leadership position in luxury goods. Find more details on LVMH's fiscal results for 2013 here.