LVMH’s revenues up 13 percent in 2017

Despite LVMH Moët Hennessy Louis Vuitton’s cautionary approach toward the end of 2017, the luxury conglomerate closed out the year with double-digit revenue growth.

2017 was a record year for the group, with revenues totaling 42.6 billion euros, or about $53.2 billion at current exchange. Along with its revenue increase, LVMH’s profits from recurring operations grew 18 percent year-over-year.

All of LVMH’s business lines achieved organic growth, with all but its wine and spirits group reporting double-digit increases, for a total 12 percent organic revenue increase.

Fashion and leather goods houses achieved 13 percent organic revenue growth, with reported revenue increases of 21 percent. 2017 marked the first complete year that Rimowa was within the group, while this past year also saw LVMH’s acquisition of Dior.

Efforts such as Louis Vuitton’s Supreme and Jeff Koons collaborations helped drive the category’s success, which included a 27 percent growth in profit.

The wine and spirits houses saw a collective 7 percent growth in organic revenue, or 5 percent as reported, with supply limits preventing further growth.

Champagne volumes were up 4 percent, while Hennessy’s volumes grew 8 percent, with the brand shipping 7.5 million cases of cognac. LVMH partly attributes Hennessy’s success to the brand’s new Pont Neuf bottling site.

In perfumes and cosmetics, revenues were up 14 percent on an organic basis and 12 percent as reported. Christian Dior Parfums grew its market share, while the division also saw success with the launch of Kendo’s Fenty Beauty by Rihanna label.

Watchmakers and jewelers saw particularly strong growth in Asia, Europe and the United States. The category saw organic revenue growth of 12 percent, with a reported increase of 10 percent.

Bulgari gained market share, helped by milestones such as the opening of a new manufacturing facility in Valenza and a new Fifth Avenue boutique in New York.

LVMH’s select retailing division, which includes Sephora and DFS, had organic revenue growth of 13 percent and reported revenue increase of 11 percent. Sephora gained market share, expanding into Germany and increasing its digital presence.

During 2017, LVMH also launched 24 Sèvres, a multibrand ecommerce platform tied to Le Bon Marché, aimed at directly competing with giant YNAP (Yoox Net-A-Porter) which was acquired earlier this week by Richemont Group.

DIOR Spring Summer 2018 ad campaign

LVMH notes that it is starting out 2018 with “cautious confidence,” as it faces currency changes and geopolitical uncertainty.

The post LVMH’s revenues up 13 percent in 2017 appeared first on CPP-LUXURY.

from CPP-LUXURY http://www.cpp-luxury.com/lvmhs-revenues-up-13-percent-in-2017/?utm_source=rss&utm_medium=rss&utm_campaign=lvmhs-revenues-up-13-percent-in-2017
via Your #1 Source to Finding Luxury & Designer Goods, Handbags & Clothes at or Below Wholesale: Click Here