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LVMH Displays Strength with 2012 Financial Results
Posted: January 31, 2013
LVMH Moët Hennessy Louis Vuitton recorded revenue of €28.1 billion in 2012, an increase of 19% compared to 2011. Organic revenue growth was 9%, and all business groups saw excellent momentum in Europe, Asia and the U.S. 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.
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."
The perfumes and 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 also continued their strong growth.
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 benefited 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.
And 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.
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.