LVMH Mo?t Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of 17.1 billion Euros in 2009. In a difficult economic environment, the Group continued its strong growth in Asia and showed good resilience in Europe. Louis Vuitton recorded double-digit revenue growth for the year.
In the Watches & Jewelry business group, an improvement in trends in the fourth quarter limited the fall in revenue for the year to 13%. Profit from recurring operations stood at 63 million Euros. Despite considerable destocking by retailers and the decline of the American and Japanese markets, the Watches & Jewelry brands consolidated their market share and maintained rigorous cost and inventory control. TAG Heuer, sustained by the success of its collections, notably Carrera and Monaco, strengthened its position in all of its key markets. Hublot showed good resilience and production started at its new factory. Zenith celebrated the 40th anniversary of its El Primero movement. Montres Dior’s Christal line continued its transition to the high-end of the market. The jewelry brands’ own store networks demonstrated good resilience, benefiting from the success of iconic collections, such as Chaumet’s Attrape-Moi and Liens, Fred’s Force 10, and De Beers’ solitaire diamonds.
With a significant improvement in performances across all its activities, the Group’s organic revenue grew 1% in the fourth quarter. A record level of revenue was achieved in December. In Wines & Spirits, the particularly strong level of destocking seen in the first half slowed down towards the end of the year. All other business groups achieved growth in revenue on a comparable structure and at comparable exchange rates during the quarter.
Profit from recurring operations was 3 352 million Euros for the year and resulted in a current operating margin of 20%. These results reflect the strong reactivity of LVMH’s teams, the cost control measures taken to adapt to the crisis as well as the success of the Group’s star brands. Group share of net profit was 1 755 million Euros.
Mr. Bernard Arnault, Chairman and CEO of LVMH, said: “LVMH demonstrated exceptional resilience in 2009. The quality of the products, the powerful appeal of our brands and the reactivity of our organization are the major advantages that made the difference and enabled the Group to win market share. Louis Vuitton in particular delivered another year of growth and has fortified its leading position. Sustained by its sound strategy, LVMH is ideally positioned to benefit from the recovery and to continue in 2010 to strengthen its leadership in the global luxury goods sector.”
LVMH is in an excellent position to once again strengthen its leadership in 2010
Taking into account the uncertainty of the strength of the economic recovery, LVMH will continue in 2010 to rigorously manage all of its businesses. Focused on further increasing its competitive advantages, the Group will continue its strong dynamic innovation and expansion in the most attractive markets.
Strengthened by the flexibility of its organization and the good balance of its business lines and geographic exposure, LVMH enters 2010 with confidence and has set itself the objective of increasing, once again, its leadership of the global luxury goods industry.
LVMH Mo?t Hennessy Louis Vuitton is the world’s leading luxury goods group. The Group is represented in Wines and Spirits by a portfolio of brands that includes Mo?t & Chandon, Dom P?rignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Ch?teau d’Yquem, Hennessy, Glenmorangie, Ardbeg, Belvedere Vodka, Chopin, 10 Cane, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Green Point, Cape Mentelle, Newton. Its Fashion and Leather Goods division includes Louis Vuitton, the world’s leading luxury brand, as well as Celine, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Donna Karan, Marc Jacobs, Berluti as well as StefanoBi. LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums Givenchy, Parfums Kenzo, Perfumes Loewe as well as other promising cosmetic companies (BeneFit Cosmetics, Make Up For Ever, Acqua di Parma and Fresh). LVMH is also active in selective retailing through DFS, Sephora in Europe and the United States, Le Bon March? and la Samaritaine. LVMH’s Watches and Jewelry division comprises TAG Heuer, Chaumet, Christian Dior Watches, Zenith, Fred, Hublot and De Beers Diamond Jewellers Limited, a joint venture created with the world’s leading diamond group.
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