The Business of Fashion: LVMH Moët Hennessy Louis Vuitton Announces Record 2016 Results

LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of €37.6 billion in 2016, an increase of 5% over the previous year. Organic revenue growth was 6%.lvmh-moet-hennessy-louis-vuitton

In the fourth quarter, revenue increased by 9% compared to the same period of 2015. Organic growth was 8%. The American market remains on a good track as does Europe. Asia, excluding Japan, continued its good momentum.

Profit from recurring operations reached €7 billion in 2016, an increase of 6%, to which all business groups, apart from selective distribution, contributed. This result compares to 2015 which was itself a year of growth. Operating margin reached 18.7%. Group share of net profit was €3 981 million, representing growth of 11%.

Bernard Arnault, Chairman and CEO of LVMH, said: “LVMH achieved an excellent performance in 2016 within a context of geopolitical and economic instability. Continued innovation, entrepreneurial spirit and the quest for excellence: all Maisons continue to assert these core values while maintaining rigorous execution of their strategies on the ground. In an environment which remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2017, our leadership in the universe of high quality products.

Key highlights from 2016 include:

  • Record revenue and profit from recurring operations
  • Growth in the United States, Europe and Asia
  • Good performance of Wines & Spirits in all regions
  • The success of both iconic and new products at Louis Vuitton, where profitability remains at an exceptional level
  • Progress at Fendi
  • The sale of Donna Karan and the acquisition of Rimowa, a leader in luggage of excellence
  • Good momentum at Parfums Christian Dior driven by successful product innovations
  • Market share gains at Bvlgari and TAG Heuer
  • Growth at Sephora which strengthened its position in all its markets and in digital
  • Free cash flow of €3 974 million, an increase of 8%
  • Gearing of 12% at end of December 2016

WINES & SPIRITS: GOOD YEAR WITH PROGRESS IN THE UNITED STATES AND REBOUND IN SHIPMENTS TO CHINA

The Wines & Spirits Business Group recorded an increase in organic revenue of 7 %. On a reported basis, revenue growth was 5 %. Profit from recurring operations increased by 10 %. With volumes up 3%, solid growth continues for champagne and prestige cuvees performed particularly well. Hennessy cognac enjoyed an excellent year with 10% volume growth. The American market is growing well and China saw better momentum after a tough 2015 due to destocking by distributors. Other spirits, Glenmorangie and Belvedere, continued their growth.

LVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits by a portfolio of brands that includes Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier, Château d’Yquem, Domaine du Clos des Lambrays, Château Cheval Blanc, Hennessy, Glenmorangie, Ardbeg, Belvedere, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape Mentelle, Newton, Bodega Numanthia and Ao Yun.

FASHION & LEATHER GOODS: GOOD PERFORMANCE OF LOUIS VUITTON, OTHER BRANDS STRENGTHENED THEIR POSITIONS

The Fashion & Leather Goods Business Group recorded organic revenue growth of 4% in 2016. On a reported basis, revenue growth was 3 %. Profit from recurring operations increased by 10%. Louis Vuitton had a good year driven by the level of creativity across all its businesses. The continued success of its iconic product range and the strong demand for recent creations such as the new luggage designed by Marc Newson and the Louis Vuitton fragrances, all contributed to this growth. Fendi recorded robust growth crossing the symbolic revenue threshold of 1 billion euros during the year. Loro Piana continued to expand its distribution network and opened a flagship store in Paris. Céline, Loewe and Kenzo all continued to grow. Marc Jacobs continued to work on changes to its collection. Donna Karan was sold in December to the American G-III group. Rimowa, world leader in luggage of excellence, joined the LVMH group.

Its Fashion and Leather Goods division includes Louis Vuitton, Céline, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Nicholas Kirkwood, Loro Piana and Rimowa.

PERFUMES & COSMETICS: CONTINUED SUCCESS OF INNOVATIONS; EXCELLENT PERFORMANCE IN MAKEUP

The Perfumes & Cosmetics Business Group recorded organic revenue growth of 8%. On a reported basis, revenue growth was 6%. Profit from recurring operations increased by 5%. The inauguration of the new atelier for the creation of fragrances, Les Fontaines Parfumées, at Grasse was a highlight of the year. Parfums Christian Dior grew market share in all regions, driven by the worldwide success of Sauvage and the vitality of its iconic perfumes J’adore and Miss Dior. The progress of makeup also contributed to the Maison’s excellent performance. Guerlain benefitted from the successful launch of its new makeup collection inspired by its fragrance La Petite Robe Noire. Benefit experienced strong growth driven by the success of its new collection for eyebrows. Make Up For Ever, Fresh and Kat Von D performed well.

LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums Givenchy, Kenzo Parfums, Perfumes Loewe as well as other promising cosmetic companies (BeneFit Cosmetics, Make Up For Ever, Acqua di Parma and Fresh).

WATCHES & JEWELRY: MARKET SHARE GAINS FOR BVLGARI AND TAG HEUER

The Watches & Jewelry Business Group recorded organic revenue growth of 5%. On a reported basis, revenue growth was 5%. Profit from recurring operations increased by 6%. Bvlgari continued to gain market share with enhancements to its Serpenti, Diva and B.zero1 lines. Growth continued in China, Korea and in the Middle East. TAG Heuer grew despite a difficult market for watches, gained market share and benefitted from the success of its new collections and its connected watch. Hublot accelerated its development in Asia and recorded the best year in its history. Chaumet continued to move its product lines upmarket and inaugurated a new boutique concept in Hong Kong.

LVMH‘s Watches and Jewelry division comprises Bulgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred, Hublot and De Beers Diamond Jewellers Ltd, a joint venture created with the world’s leading diamond group.

SELECTIVE RETAILING: GOOD PERFORMANCE AT SEPHORA, DFS IMPACTED BY A DIFFICULT TOURISM CONTEXT IN ASIA

The Selective Retailing Business Group recorded organic revenue growth of 8%. On a reported basis, revenue growth was 7%. Profit from recurring operations declined by 2%. Sephora gained market share across all regions and once again recorded double-digit growth in both revenue and profits. More than a hundred stores were opened in 2016 including notably a flagship store in the World Trade Center in New York and major renovations in Boston and Singapore. Its online offer accelerated with the launch in six new countries. DFS continued to face a difficult environment, notably in Hong Kong. The expansion into new destinations continued. The opening of the T Galleria in Angkor in Cambodia and one in Venice, Italy were the highlights of the year.

LVMH is also active in selective retailing as well as in other activities through DFS, Sephora, Le Bon Marché, La Samaritaine, Royal Van Lent and Cheval Blanc hotels.

Key figures:

             
Euro millions    

2015

 

2016

 

% change

Revenue    

35 664

 

37 600

 

+ 5 %

Profit from recurring operations    

6 605

 

7 026

 

+ 6 %

Group share of net profit    

3 573

 

3 981

 

+ 11 %

Free cash flow*    

3 679

 

3 974

 

+ 8 %

Net financial debt    

4 235

 

3 265

 

– 23 %

Total equity    

25 799

 

27 903

 

+ 8 %

* Before available for sale financial assets and investments, transactions relating to equity and financing activities Continue reading

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Three, Two, One…Holiday! Amazon.com Launches Black Friday Deals Store and Curated Holiday Gift Guides

This Holiday Season, Customers Can Enjoy More Deals Than Ever Before On Everything From Hd Tvs To Stylish Kitchen Staples To Some Of The Most Popular Toys Of The Year

To Help Customers Find The Perfect Gift For Everyone On Their Shopping List, Amazon Offers Curated Holiday Gift Guides For Electronics, Home, Handmade, And Other Categories

Alexa, What Are Your Deals? New This Year, Prime Members Can Use Alexa Voice Shopping To Shop For Almost Anything, Including Exclusive Deals For Customers With An Amazon Echo, Echo Dot, Amazon Tap, Amazon Fire Tv, Or Fire Tablet

Amazon.com has announced the launch of its Black Friday Deals Store and more than a dozen curated holiday gift guides, officially marking the start of the holiday countdown. Customers can enjoy tens of thousands of deals this holiday season on Amazon.com, with new deals as often as every five minutes on everything from HD TVs to stylish kitchen staples to some of the most popular toys of the year. In addition, Amazon offers curated holiday gift guides to help take the guesswork out of shopping for loved ones and make it easier for customers to find the perfect gift for everyone on their list.logo_white_

Customers love discovering the best deals on the most sought-after products, and our Black Friday Deals Store and curated Holiday Gift Guides offer them a place to do just that – plus enjoy the most convenient shopping experience with tons of super-fast shipping options,” said Doug Herrington, Senior Vice President of North American Retail at Amazon. “This holiday season, we’re offering more deals than ever before and – for the first time ever – giving Prime members an opportunity to use Alexa voice shopping for purchasing their holiday gifts hands-free. They can make purchases simply by asking Alexa-enabled devices, like the new Echo Dot, while relaxing at home with family and friends.

Black Friday Deals Store

Available at www.amazon.com/blackfriday, the Black Friday Deals Store is the leading deals destination for customers with tens of thousands of deals, and new deals as often as every five minutes, now through December 22. Customers can enjoy more deals than ever before this holiday season, including low prices on top gifts such as electronics, toys, clothing, jewelry, kitchen items, and more. In fact, Amazon is offering up to 20 compelling Deals of the Day in a single day. Some examples of the great deals Amazon customers can take advantage of this holiday season include: $20 off the Kindle Paperwhite, savings on an LG 55” 1080p Curved Smart OLED TV, and up to 40% off select Magformers toys.

Electronics Gift Guide

Available at www.amazon.com/electronicsgiftguide, the 2016 Amazon Electronics Gift Guide features more than 500 of this year’s hottest technology products all in one convenient location. Enthusiasts can explore new releases such as 360-degree cameras and buzz-worthy gifts like virtual reality headsets and 3D printers. The Electronics Gift Guide also features innovations from up-and-coming startups in the Amazon Launchpad program. Customers can browse more than 10 categories, including smart home, home entertainment, music, wearables, photography, gaming, gadgets and gizmos, and more. The Electronics Gift Guide also includes expert reviews and product demonstration videos to help customers find the perfect gift. And shoppers looking for budget-friendly gift ideas can find top gifts under $100.

Home Gift Guide

Available at www.amazon.com/homegiftguide, the 2016 Amazon Home Gift Guide is a curated list of more than a thousand of this season’s must-have products for the home. Filled with gift ideas for indoors and outdoors, customers can easily discover presents for everyone on their list, including cooks, bakers, home decorators, arts and crafters, smart home tech lovers, pets, backyard enthusiasts, kids and more, curated by experts in the industry such as Smitten Kitchen and Design*Sponge. Holiday decorators and party planners will find everything they need to set a festive scene at home. Customers can also shop the latest trends in the Home Gift Guide, including copper appliances, rose gold cutlery, and handmade ceramics, as well as browse products that are new this holiday season, including the KitchenAid Mini, NEST Fragrances Classic Candle (Hearth), Petcube Play Wi-Fi Pet Camera, and Bissell 1650A Pet Hair Eraser Vacuum.

Handmade at Amazon Holiday Gift Guide

Available at www.amazon.com/handmade, the Handmade at Amazon Holiday Gift Guide offers customers curated lists of genuinely handcrafted items sold directly by artisans. Featuring products for her, for him, and for kids, as well as handcrafted stocking stuffers for friends and family, the Gift Guide makes finding the perfect holiday present easier than ever. Heading into this holiday season, Amazon customers visiting the Handmade at Amazon store will see hundreds of thousands more handcrafted items, thousands of which are eligible for Free Two-Day Shipping with Amazon Prime. For shoppers looking for a personal touch, over half of the items listed on Handmade have options for customer personalization. With handcrafted items in categories from toys and games, to home décor, handbags and accessories and kitchen and dining, Handmade at Amazon is a one-stop-shop for artisan-crafted gifts this holiday season. Continue reading

Now Open: Four Seasons Hotel Kyoto Unlocks The Hidden Secrets Of Japan’s Ancient Imperial Capital

Dedicated Four Seasons Experience Creator Devises Unique Itineraries That Give Travelers Exclusive Access To Authentic Cultural Encounters

Kiyomizu-dera stage in autumn

Kyoto, Japan — Kiyomizu-dera stage in autumn — Image by © amanaimages/Corbis

In the shadow of Higashiyama Mountain in the temple district of Japan’s ancient capital, a modern oasis of serenity and style opens the doors to a city that is both beautiful and mysterious, breathtaking and inspiring. This is Four Seasons Hotel Kyoto, secluded amid a five acre (two hectare) 12th century pond garden, yet just moments from key centers of business, culture, history and natural wonders.kyo_027_aspect16x9

Kyoto is one of the world’s most alluring cities, but she can be shy in revealing her secrets – our mission at Four Seasons is to help our guests discover her wonders and experience all the city has to offer,” says General Manager Alex Porteous, who leads the 270-person team at the intimate Hotel with 123 rooms and 57 Hotel Residences in the historic Higashiyama District, close to downtown.

Cherry blossom time, in Kiyomizu Dera Temple, in Kyoto, Japan. Image shot 2012. Exact date unknown.

CNKDYW Cherry blossom time, in Kiyomizu Dera Temple, in Kyoto, Japan. Image shot 2012. Exact date unknown.

The new Four Seasons Hotel Kyoto is the sister property of Four Seasons Hotel Tokyo at Marunouchi, suggesting an opportunity for travelers to experience the ancient and modern capitals of Japan in Four Seasons style. The company recently announced plans for a third hotel in Japan, in Tokyo’s Otemachi business district.kyo_058_aspect16x9

Welcome to Four Seasons Hotel Kyoto

A Good Night’s Rest: Guest rooms including 13 suites – are designed by Hirsch Bedner Associates to showcase views of the pond garden, Myoho-in Temple and surrounding neighborhood. Traditional elements such as shoji panels, polished woods, locally crafted Kyoto-style fusuma screens and urushi lacquerware are paired with modern at-one’s-fingertips technologies. Selected accommodations, including the lavishly appointed Presidential Suite, also have balconies. At 245 square meters (2,637 square feet indoors plus additional furnished outdoors space, the Presidential Suite is one of Kyoto’s largest.  All guest rooms and suites feature the signature Four Seasons Bed.kyo_035_aspect16x9

Dining at Four Seasons: In a city renowned for its continuing history of innovative cuisine, Four Seasons Hotel Kyoto is a destination unto itself. The Brasserie brings the spirit of modern bistro fare to the city with a distinctive local twist. Dishes include Chef Tsuyoshi Iryo’s miso-marinated foie gras terrine and ox tongue bourguignon with local daikon and sprout salad. The pinnacle of Edo-Mae style sushi is showcased at the exclusive Sushi Wakon, produced by Michelin-starred Chef Red Masuda, with Chef Masashi Yamaguchi serving just 10 guests per seating at the eight meter long (26 foot) hinoki (cypress) counter. Two private dining spaces for 4 or 8 guests are also available.kyo_054_aspect16x9

In the inviting Lounge, guests are treated to gourmet bites to accompany selections of fine domestic and imported whiskies and other spirits, creative coffee drinks, “gastro” teas, and other beverages. Across the historic pond, a tea house awaits at Shakusui-tei, with a menu of local sakes and premium champagnes to sparkle alongside the water’s reflections in the evening.

Health and Well-Being: The Spa at Four Seasons Hotel Kyoto is grounded in the Japanese aesthetic of enso, connecting mind and body. A menu of ceremonious rituals, results-oriented therapies and indulgent journeys are performed by skilled therapists in one of seven treatment rooms, including a couple’s suite. Of special note are skin care treatments using Tatcha, a luxury brand inspired by the 200 year old style guide called Miyakofuzoku Kewaiden. French high-performance line Biologique Recherche and all-natural Sodashi from Australia are also featured alongside Kotoshina products formulated with organic green tea from Uji, Kyoto and French spa water for beautiful skin.kyo_062_aspect16x9

The Spa complex includes a sauna, steam and whirlpool; a full-service beauty salon; state-of-the-art fitness centre, and 20 meter (66 foot) indoor pool. Continue reading

Official Launch of Wedspire Revolutionizes Wedding Industry

Each year, couples in the United States spend $100 Billion on wedding products and services, yet the stress on both professionals and consumers had yet to be resolved. That is, until Wedspire came into fruition. Wedspire, a new and unique two-sided, curated marketplace for the wedding industry, is officially launching on Sunday, October 2. Wedspire will be having its official public launch in Las Vegas at Wedding MBA October 3-5, at The Las Vegas Convention Center.9cf6df589930e89687b782ae0fc0

Wedspire is a platform to source, and purchase items from wedding professionals all in one spot. Through the platform, couples are offered wedding services and products through an extensive style quiz that results in an overall personalized experience for every user. With both the wedding professionals and consumers in mind, Wedspire has combined innovative features to create the most user-friendly and all-inclusive wedding marketplace available online.c501cee3d44531d2b06c9cd87cc0

The website brings the interaction between wedding professionals and couples into the ever-changing era of high technology. By catering to the millennial ideal of on-demand service, this innovative marketplace has combined information, inspiration, and the ability to purchase services all in one beautifully packaged platform.

Newly-engaged couples enjoy a curated Neflix-style feed of shopable items – from wedding cakes to that perfect dress and more. Comprehensive style and preference quizzes filter wedding needs based on style, budget and location into a unique ‘dream feed’ of items that are actually available for purchase. In addition to innovative planning tools, Wedspire allows the couple to shop while their budget dynamically updates based on their purchases. Throughout the entire process, from inspiration to check out, the website allows and encourages collaboration between family, friends and wedding professionals.fbcb582f14221aeb564142cf6855

For wedding professionals, Wedspire has innovative manager tools that make it seamless for wedding professionals to fulfill orders and provide first class service to their customers. Tools such as synced appointment calendars, customizable billing options and integrated shipping allows the pro to focus on what they do best: deliver their service or product to the Bride and Groom on the happiest day of their life. Continue reading

The Knot Unveils the Top Trends in Weddings for 2016

Contemporary Choirs, Satellite Bars, 3-D Printing and Personal Concierge Pros Are Making Their Way Into 2016 Weddings

The Knot, the #1 wedding resource and an authority on all-things wedding, has released its annual Wedding Trends Report of the top trends for 2016. From satellite bars and two-in-one-dresses to choirs performing rock ballads as you walk down the aisle or dance your first dance, the 2016 trends have taken wedding traditions to a whole new level.

THE KNOT LOGO

The Knot logo. (PRNewsFoto/The Knot)

Weddings are more personalized than ever, with couples putting their own unique touches on classic traditions,” says Kellie Gould, editor in chief of The Knot. “Couples are taking entertainment up a notch by hiring contemporary choirs that will sing an a cappella version of their first dance song, and upgrading the signature cocktail to satellite bars featuring specialty drinks with engraved glassware and elaborate garnishes. Guys are even upping their grooming game and stepping into the spotlight more with custom suits and accessories.”

The Knot Wedding Trends Report for 2016:

Two-in-One Dresses & Fashion-Forward Florals: Instead of making a complete dress change from the ceremony to reception, brides are opting for convertible dresses that combine a formal ceremony gown and a fun reception frock in one. Picture a dramatic feather skirt overlay that gets removed after the ceremony to reveal a lace column gown you can hit the dance floor in. Additionally, flowers are going beyond the bouquet and centerpieces. Vibrant, floral-printed dresses and traditional dresses with 3-D floral appliqués are flooding the bridal runways. Can’t commit to a gown? Try a blooming flower crown.

Wedding Concierge Pros : Wedding planning is getting easier. If an extra hand is needed to execute any element of the day that falls out of the realm of traditional planner duties, there’s a pro—and many times, an app—for that. Popular services include proposal assistance, bridesmaids for hire, bachelor party planning gurus, social media mavens and speechwriters. And The Knot can even help couples find the perfect venue with their Venue Concierge Service—for free! Brides can now hire someone to tackle the jobs they don’t have time for—including live-tweeting your wedding day and training your four-legged ring bearer.

Satellite Bars: Say hello to the satellite bar in 2016. In addition to the standard mixed drinks, beer and wine setup, this second bar is designated for a special spirit. It’s a great way to personalize the party with your favorite libation, or even serve a tasting of preferred wines. Set up a bar that highlights your preferred drink, like champagne or a specialty gin. If you’re down for tequila, try some twists on the classic margarita (hello, grapefruit) or tasteful shooters. Personalize one step further with colored glassware, infused ice cubes or elaborate garnishes, like smoke, that will wow guests.

Contemporary Choirs & Late-Night Karaoke: Keeping guests entertained all night long with special musical performances isn’t new, but this year’s trend is: choirs. Think 20-person ensembles with amazing a cappella abilities. Surprise guests by hiring a marching band or gospel choir and have them perform a favorite rock ballad for the walk down the aisle or an a cappella version of the first dance song. And if you’re hosting an after-party, karaoke is king. A basic karaoke setup and some photo booth props is all you need to keep the party going. Watching friends and family belt out their favorite ’90s hits is priceless.

Sweet Endings: Cakes are getting a design update with graphic prints and textile-like motifs, while plain tiers are acting as a canvas for projecting video displays—the perfect marriage of dessert and technology. The wedding cake is here to stay, but it’s no longer the only dessert on the menu. Passed treats, especially of the frozen variety like shaved ice or fruit-infused ice pops with the couple’s names on the stick, are trending along with installations like doughnut walls.

Wow-Worthy Websites: Weddings have become weekend-long celebrations, regardless of destination, making wedding websites a must-have for all the details guests need. Enter the web designer. Couples are hiring design gurus to create a completely custom site with a unique URL, bespoke details and personalized illustrations. But you don’t need a web designer to get a beautiful site. The Knot wedding website tool offers more than 80 gorgeous wedding website designs that can be personalized to include a couple’s favorite photos and links to their registries. Some even offer matching invitations. Continue reading