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LVMH Reports Gains in Fiscal 2008
Posted: February 6, 2009
LVMH Moët Hennessy Louis Vuitton recorded revenue of €17.2 billion in fiscal 2008, an increase of 4%. Organic revenue grew 7% for the year. In the fourth quarter, reported revenue was €5.2 billion, an increase of 4%. Profit from recurring operations rose by 2% to €3,628 million.
“The 2008 results demonstrate the exceptional reactivity of our organization in this period of economic crisis," said Bernard Arnault, chairman and CEO, LVMH. "The group has always emerged stronger from previous economic downturns thanks to the dynamic innovation of its brands, the quality of its products and the effectiveness of its teams. LVMH approaches the challenges and the opportunities of 2009 with confidence and determination and has set the objective of increasing its leadership position in the worldwide luxury goods sector.”
The company's perfumes and cosmetics business registered organic revenue growth of 8% in 2008. Profit from recurring operations reached €290 million. The current operating margin reached 10%. Christian Dior continued to win market share, according to the company. The vitality of its "star" perfume, J’Adore, and the success of Dior Homme Sport have contributed to the brand’s momentum. Makeup is growing, and has benefited from the success of the Dior Addict and Diorshow lines. The performance of Guerlain was supported by the successful launches of the masculine perfume Guerlain Homme and Le 2 mascara. The principal drivers of Givenchy’s growth were the continued progress of Very Irresistible, the launch of the masculine fragrance Play and the new mascara Phenomen’Eyes. Benefit enjoyed rapid growth in China and confirmed its worldwide success.
Sephora continued its strong momentum in 2008, which resulted in market share gains and a continued good level of profitability. Revenue growth on a same-store basis was steady. The brand is expanding its presence in key markets and continues the evolution of its existing store network. Online sales have shown strong growth in France, the U.S. and China. Sephora continued its differentiation strategy with a more innovative and exclusive product offering, complemented by a large range of in-store services and treatments.
Additional information is available from LVMH.