New record year for LVMH

The worldwide luxurious big LVMH had a brand new file yr in 2019, garnering 53.7 billion euros in gross sales due to the success of its flagship manufacturers Louis Vuitton and Christian Dior, but additionally to Chinese language demand, which has not weakened.

“I'm a bit repetitive nevertheless it's nonetheless a file yr,” mentioned the CEO. Bernard Arnault Tuesday throughout the presentation of the group's annual outcomes.

“Due to our groups, we managed to make a file by way of turnover, we fortunately exceeded 50 billion, (a file) in working revenue. We have now an excellent monetary scenario, the money move considerably improves, “he mentioned.

Final yr, turnover thus elevated by 15% in revealed knowledge and by 10% in natural phrases, reaching 53.7 billion euros, in step with the forecasts of the companies Bloomberg and Factset which each projected out of 53.5 billion.

Internet revenue reached 7.17 billion euros, up 13% yr on yr.

LVMH gross sales proceed to be pushed by the Asia area (excluding Japan), the group's first market, the place it achieved 30% of its complete gross sales – in comparison with 29% the earlier yr – “regardless of a troublesome context in Hong Kong within the second half of 2019, “mentioned the press launch.

Revenues on this Asia zone elevated by 14% over the total yr, in contrast with + 11% for Europe, + eight% in Japan and 6% in america.

By enterprise sector, the posh items big stays supported by its flagship Vogue and Leather-based Items division, whose gross sales jumped 17%, reaching 22.2 billion euros.

Louis Vuitton “has gone from success to success this yr, and continues to be largely the primary luxurious model on the earth,” mentioned Bernard Arnault.

“We voluntarily have manufacturing issues, since we have now opened a brand new workshop in France, a brand new workshop in america, and this isn’t sufficient to make sure all of the demand. It’s not very critical as a result of the expansion is kind of good “, commented France's first fortune.

– “Get even stronger” in 2020 –

The group's second exercise, selective distribution (Sephora, DFS) noticed its gross sales improve by 5%, to 14.7 billion euros.

“Sephora information sturdy progress and continues to achieve market share. The development is especially sustained in Asia and the Center East”, underlines LVMH, whereas DFS (Obligation Free Retailers) “faces within the second half of 2019 a slowdown tourism in Hong Kong, which is a vital market. “

“DFS is predicated for an excellent half in Hong Kong. It stays worthwhile however the profitability has dropped, I feel it ought to begin once more when the issues of this area enhance, the difficulties that Hong Kong is experiencing will ultimately disappear someday” , commented Bernard Arnault.

As for Wines and Spirits, turnover elevated by 6% to five.5 billion euros. Mr. Arnault underlines “the excellent improvement of champagne” and the truth that Hennessy cognac has “turn out to be the primary + premium + spirit on the earth”, that’s to say offered above 20 dollars, thus forward of Jack Daniel's and Johnny Walker, two manufacturers of whiskey.

For 2020, LVMH doesn’t give quantified goals, however signifies that “in a buoyant however unsure financial system, we’ll stay vigilant and targeted on our progress goals. We will rely on the ability of our manufacturers and on the agility of our groups to additional strengthen our lead on the earth of top of the range merchandise in 2020 “.

With the mixing this summer season of the American jeweler Tiffany, which LVMH has simply purchased for 16.2 billion dollars, the group of Bernard Arnault ought to thus additional improve its turnover: the jeweler has certainly achieved four.four billion dollars in gross sales in its final fiscal yr.

(with AFP)