Moda
LVMH: Excellent performance of LVMH in 2014
Paris, 3 February 2015
LVMH Moët Hennessy Louis Vuitton, the world's leading luxury products group, recorded revenue of EUR30.6 billion in 2014, an increase of 6% over the previous year . Organic revenue growth was 5%. Revenue in all business groups increased with the exception of Wines & Spirits which continued to be affected by the destocking of distributors in China. The Group maintained strong momentum in the United States. Europe demonstrated good resilience despite the economic environment, while Asian countries displayed mixed trends.
In the fourth quarter, revenue increased by 10% compared to the same period of 2013. Organic growth was 5%.
Bernard Arnault, Chairman and CEO of LVMH, said: "The 2014 results confirm the capacity for LVMH to progress despite economic and currency uncertainty. Revenue and net profit reached new record levels. Commitment to excellence, a passion for quality and our capacity to innovate underpin our growth momentum and are all values epitomised by the Fondation Louis Vuitton and its emblematic building inaugurated in October 2014. The year was also marked by the arrival in the Group of Loro Piana, which saw a good performance. LVMH reached an agreement with Hermès and disposed of its stake in this company, in the form of a distribution to our shareholders. In 2014, all our Maisons demonstrated outstanding flexibility. By adapting their strategies to global changes and by continuing to evolve, they have shown the creativity and entrepreneurship that drive them forward. In an uncertain economic environment, we can rely on the desirability of our brands and the agility of our teams to further strengthen our leadership in the world of high quality products."
Key highlights from 2014 include:
:
The business group recorded a decrease in organic revenue of 3% in 2014. Profit from recurring operations reached EUR1 147 million. This situation is essentially explained by the evolution of cognac in China linked to the continued destocking by distributors. Against this background, Hennessy leveraged its extensive portfolio and global presence, in particular in the United States, where its growth remains strong. Other spirits, Glenmorangie and Belvedere continue their development. The champagne business performed well, driven in particular by its prestige vintages. The American and Asian markets benefited from strong demand.
The business group recorded organic revenue growth of 3% in 2014. Profit from recurring operations reached EUR3 189 million. For Louis Vuitton, 2014 was characterised by strong creative momentum, dominated by the enthusiastic reception of Nicolas Ghesquière's first runway shows and of the new products. The celebration of the canvas as revisited by six leading designers and the inauguration of the Avenue Montaigne flagship store in Paris are among the highlights of the last quarter. 2014 marks the first year of Loro Piana's integration into the business group. Fendi experienced strong growth driven by the success of its iconic lines. Celine continued its remarkable performance. Other fashion brands such as Givenchy, Kenzo and Berluti experienced accelerated growth while Donna Karan and Marc Jacobs are in a redeployment phase.
The business group significantly outperformed the market with organic revenue growth of 7%. Profit from recurring operations amounted to EUR415 million. The business group's momentum was boosted by continuous innovation and sustained investments. Iconic perfumes of Christian Dior, , and continued to demonstrate their exceptional appeal. The make-up segment also contributed to the good performance of the Maison, notably thanks to Guerlain benefited from the successful launch of its new fragrance and the success of its high-end skincare range . Benefit confirmed its strong global momentum and is ranked as the leading make-up brand in the UK. Fresh and Make Up For Ever continued to strengthen their positions.
The business group recorded organic revenue growth of 8%. Profit from recurring operations reached EUR882 million in 2014. Sephora had an exceptional year and continued to gain market share. Performance was excellent especially in North America, the Middle East and Asia. Online sales grew significantly, supported by innovative mobile features. The store network expansion continued: the company established a new presence in Indonesia and Australia while several flagship stores, such as the Champs-Elysées and Dubai Mall, have been renovated. New brands enhanced the product offering, bringing a diversity that never ceases to keep Sephora ahead in beauty innovation.
Faced with a complex situation in Asia, particularly relating to currency and geopolitical developments, DFS continued to focus on optimizing its offer and deploying its loyalty program. Its profitability was equally impacted by the expansion and renovation of several airport concessions.
Driven by the agility of its teams, the balance of its different businesses and geographic diversity, LVMH enters 2015 with confidence and has, once again, set an objective of increasing its global leadership position in luxury goods.
At the Annual Shareholders' Meeting on April 16, 2015, LVMH will propose a dividend of EUR3.20 per share, an increase of 3%. An interim dividend of EUR1.25 per share was paid on December 4 of last year. The balance of EUR1.95 per share will be paid on April 23, 2015.
Copyright GlobeNewswire
Attachment(s)
http://hugin.info/143740/R/1891428/669768.pdf
Regulatory News
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: %s via Globenewswire