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%.

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

Neiman Marcus Announces Stella Tennant as the Face of The Spring 2015 Art of Fashion Campaign Photographed by Luigi & Iango

Neiman Marcus announces the Spring 2015 Art of Fashion Campaign with photographers Luigi Murenu and iango Henzi. Luigi & iango capture the Scottish model Stella Tennant in 28 of spring’s boldest looks. The simplicity of the set lets the dramatic clothes, the sinuous Tennant, and the lensmen’s superb lighting—a single giant lamp typically reserved for film sets—work their magic.

Stella Tennant In Tom Ford

Alexander McQueen

“The lights are strong and continuous. Brutal,” attests Murenu, one half of the New York–based team. “But Stella is very artistic, her body expressive.” Over the three-day shoot, Murenu and Henzi switch roles organically, pivoting between art-directing compositions and stepping behind the camera. “We’re completely integrated to one idea even if it has two voices,” Murenu explains.

The Swiss-born Henzi brings the precision of fine art, while Murenu, raised in Sardinia, radiates with the excitement of fashion. Together, they create images that compel—and endure—with a streetwise elegance.

“The Spring 2015 Art of Fashion campaign is about classic, iconic fashion photography and bringing together three amazing creative forces: Luigi, iango and Stella Tennant,” said Georgia Christensen, Neiman Marcus Executive Creative Director. “It was wonderful to see Luigi and iango work together and experience their creative process. Two minds. Two points of view that came together seamlessly into one portfolio of images. A true collaboration of passionate artists devoted to the industry. Stella is a dream, I often found myself mesmerized by her on set. The result is extraordinary imagery.”

Designer merchandise featured in the Spring 2015 campaign includes: Akris, Alexander McQueen, Balenciaga, Burberry Prorsum, Carolina Herrera, Chanel, Chloe, Christian Louboutin, Cucinelli, Derek Lam, Dior, Dolce & Gabbana, Emilio Pucci, Erdem, Gucci, Lanvin, Michael Kors, Oscar de la Renta, Roger Vivier, Saint Laurent, Stella McCartney, The Row, Tom Ford, and Valentino.

Since 1994, each spring and fall, the world’s most visionary photographers have carried the torch and given The Art of Fashion their own signature. Past photographers have included: Richard Avedon, Geof Kern, Peggy Sirota, Ruven Afandador, Diego Uchitel, Peter Lindbergh, Arthur Elgort, Camilla Akrans, Raymond Meier, Erik Madigan Heck, and Walter Chin. The campaign will be featured in our publication “the Book” as well as Harper’s Bazaar, Vogue and Vanity Fair.

Trend-ology: New Exhibition to Open at The Museum at FIT

Fashion & Textile History Gallery at The Museum at FIT

December 3, 2013 – April 30, 2014

The Museum at FIT will present Trend-ology, a new exhibition that examines the sources from which fashion trends have emerged over the past 250 years. Themes highlighted include 18th-century court dress, the rise of the couturier in 19th-century Paris, hip hop fashion, and more recent developments related to blogging, fast fashion, and social-media networking. Featuring approximately 100 objects from the museum’s permanent collection, the exhibition will also highlight industry developments that have had an impact on how trends propagate. The show features designs by Christian Dior, Yves Saint Laurent, Rei Kawakubo, Jean Paul Gaultier, Helmut Lang, Martin Margiela, and Opening Ceremony, to name a few. Also on view is a video produced exclusively for Trend-ology, featuring interviews with fashion insiders Simon Doonan, Carol Lim of Opening Ceremony and Kenzo, Saul Lopez Silva of WGSN, and many others.

(left) Rodarte, evening dress, black and nude net, wool, black leather, beads, cheese cloth, and metal gauze, spring 2010, USA, museum purchase, (right) Rodarte for Target, evening dress, polyester crepe chiffon, 2009, USA, gift of The Fashion and Textile Studies Department and the School of Graduate Studies

Fashion trends change every season, with shifts in print, color, material, embellishment, and silhouette. These derive from a variety of sources, including urban street style, art, music, film, and socio-political movements. The word “trend” first arose as an economic term used to describe shifts in financial markets. Today, the word is ubiquitous in the fashion media, and trend forecasting companies have made researching and predicting trends a profitable business.

Yet, as we move further into the 21st century, specific trends seem increasingly hard to define. The advent of fast fashion, the internet, and social media have created a quick-paced global environment in which fashion trends emerge and spread in faster and more complex ways than ever before. By looking back at the history of trends, Trend-ology aims to help viewers gain insight into the current state of the trend cycle.

Louis Vuitton (Takashi Murakami), “Speedy 30” monogram handbag, multicolor monogram canvas, 2003, France, museum purchase

Trend-ology will open with an overview of 21st-century developments in fashion retailing. These will include examples from fast-fashion companies, such as Zara, H&M, and Topshop, that have contributed to the increasing fascination–and anxiety–surrounding trends. High-low collaborations, including a “Rodarte for Target” sequined dress from 2009, will be juxtaposed with high fashion designs–in this case, a runway piece from Rodarte’s spring 2010 collection. A selection of “It” bags, including a Louis Vuitton Speedy 30 bag designed in collaboration with Japanese artist Takeshi Murakami, will illustrate how important the sale of accessories has become to luxury brands during the new millennium. To highlight the recent emergence of concept stores, the introductory section will culminate with ensembles from Opening Ceremony and Colette.

The exhibition’s historical chronology will begin with two 18th-century ensembles, one for a man and the other for a woman, rendered in vibrant shades of yellow. Once negatively associated with “heretics,” yellow became a trendy color in 18th-century dress. The change in yellow’s cultural meaning can be traced to the growing popularity in Europe of chinoiserie. In China, yellow was an auspicious color associated with the emperor.

(left) Dress, yellow silk faille, circa 1770, USA (possibly), museum purchase, (right) Men’s coat, yellow silk, circa 1790, USA (possibly), museum purchase

(left) Dress, yellow silk faille, circa 1770, USA (possibly), museum purchase, (right) Men’s coat, yellow silk, circa 1790, USA (possibly), museum purchase

Dress, tartan silk, circa 1812, Scotland, museum purchase

A selection of tartan dresses will show a recurring international trend for tartan dress that emerged during the 19th century from the widespread popularity of Sir Walter Scott’s Scottish-themed novels.

Starting in the mid-19th century, the pace of the trend cycle was accelerated by certain capitalist developments, such as the emergence of the couture house and the subsequent rise of the department store. These developments will be addressed in Trend-ology with a dress, circa 1883, by couturier Charles Fredrick Worth shown alongside an ensemble from Lord & Taylor, circa 1895, and a Lord & Taylor mail-order catalogue from the same period.

Campari “Kiss Superstition Goodbye” In 2013 Calendar Starring Penelope Cruz and Shot By Photographer Kristian Schuller

Campari unveiled its highly anticipated annual calendar last week at a press conference (and ultra exclusive cocktail party later that night) in Milan. Taking the lead in this year’s CAMPARI CALENDAR is beautiful Oscar winning actress, PENELOPE CRUZ, whilst noted fashion photographer, KRISTIAN SCHULLER, shot the intense imagery.

CAMPARI 2013 CALENDAR: INTRO: ROMONA KEVEZA COLLECTION (Red silk/chiffon gown with asymmetrical neckline and draped bodice, featuring a couture sarong skirt with attached side tails), STUART WEITZMAN Shoes (Dipille in red satin) and CHOPARD (Yellow gold earrings set with rubies (44cts) and diamonds (3cts)) Photo by Kristian Schuller.

CAMPARI 2013 CALENDAR – FEBRUARY – SUPERSTITION: NUMBER 13 – ALAÏA – (Long pleated dress) and JOYERIA MOLINA CUEVAS (White gold, diamond and ruby earrings and Joyeria Molina Cuevas – White gold, diamond and ruby bracelet) Photo by Kristian Schuller

The CAMPARI CALENDAR is one of the world’s iconic artistic calendars. The concept of “Kiss superstition Goodbye” was created by BCUBE MILAN. Working side by side with the photographer Kristian Schuller on the project were ANDREA MARZAGALLI, senior art director and BRUNO VOHWINKEL, senior copywriter. The production has been executed L&A ARTIST – MILAN.

CAMPARI 2013 CALENDAR – MARCH – SUPERSTITION: UMBRELLAS OPENED INDOORS: ALAÏA Trench coat and CASADEI pumps