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

The Luxury Collection Hotels & Resorts Makes Singapore Debut

Following an Extensive Renovation with Design Direction from Internationally Acclaimed Interior Designers Anouska Hempel and Jacques Garcia, The Duxton Club Is Expected to Open in the “Garden City’s” Historic Tanjong Pagar District in 2017

The Luxury Collection® Hotels & Resorts, part of Marriott International, announced it will debut the brand’s first-ever hotel in Singapore in early 2017. In partnership with boutique developers Harpreet and Satinder Garcha, The Duxton Club, a Luxury Collection Hotel, Singapore will showcase the island’s rich history with stunning redesigns from Anouska Hempel and Jacques Garcia of traditional shophouses–a prevalent building in Singapore’s architectural heritage–in the Tanjong Pagar conservation district. Both preserving the past and offering guests a contemporary luxury experience, the multi-million-dollar renovation will bring to life Singapore’s roots in an authentic and indigenous way.

rendering-of-the-lobby-at-the-duxton-house-by-anouska-hempel-design

Rendering of the lobby at The Duxton House by Anouska Hempel Design

The Duxton Club will reside in two pre-war colonial shophouse buildings within walking distance of one another: The Duxton House on Duxton Road and The Duxton Terrace on Murray Street. Strategically situated in the Duxton area, the two buildings are adjacent to the emerging Central Business District of Tanjong Pagar and border the culturally rich Chinatown area. In recent years, the neighborhood has enjoyed a revival, emerging as the epicenter for today’s global traveler as one of the island’s most stylish leisure and dining neighborhoods. The Duxton House is expected to open in early 2017, while The Duxton Terrace is slated to open in July 2017.

We are thrilled to bring The Luxury Collection to Singapore,” said Rajit Sukumaran, Senior Vice President, Acquisitions & Development, Marriott International Asia Pacific. We are confident that The Duxton Club will make its mark on the country’s highly competitive hospitality market, and we’re proud to work with Harpreet and Satinder Garcha, who are passionate about design and adaptive-reuse heritage projects.

Originally constructed in the early 19th century, The Duxton House features 50 guestrooms in eight adjoining three-story buildings reimagined by celebrated designer Anouska Hempel, whose comprehensive interior design background spans hotels, restaurants, retail spaces and luxury residential projects including the Hempel Hotel and Blakes Hotel in London, and high-end retail stores around the world such as Van Cleef and Arpels and Louis Vuitton.

Under the strong interior design identity of Hempel, The Duxton House will be restored to its former glory with rich oriental influences that honor the property’s unique heritage and timeless sense of luxury and glamour. Once completed, the hotel will include a destination restaurant, signature bar and private cigar room – all offering refined experiences for discerning guests seeking authentic, indigenous experience deeply rooted in the destination.

Just 600 feet away, with convenient access to the upscale establishments of Tras Street and Club Street, The Duxton Terrace comprises fourteen adjoining three and four-story colonial-era buildings with 138-guestrooms. Originally, completed in 1929, the structure likely served Chinese merchants before being converted to army barracks. Since then, the building has been adapted for different purposes, from housing a hawker food alley to restaurants and office space. The property’s most recent renovation project received the Architectural Heritage Award from the Urban Redevelopment Authority, further solidifying the building as a cherished and historic landmark.

The Duxton Terrace will be restored to its original grandeur by renowned architect and designer Jacques Garcia, whose extensive design portfolio includes the restoration of The Louvre and The Palace of Versailles. The hotel will house five captivating food and beverage venues including a signature bar and lobby bar, an all-day dining restaurant, a poolside bar and an exclusive member’s club. Additional facilities will include an outdoor swimming pool, fitness center and cigar room. Guests of The Duxton Club will enjoy full use of the facilities at both premises. Continue reading

Costume Institute’s Spring 2016 Exhibition At Metropolitan Museum To Focus On Technology’s Impact On Fashion

Costume Institute Benefit May 2 with Co-Chairs Idris Elba, Jonathan Ive, Taylor Swift, and Anna Wintour, and Honorary Chairs Nicolas Ghesquière, Karl Lagerfeld, and Miuccia Prada

Exhibition Dates: May 5–August 14, 2016
Member Previews: May 3−May 4
Exhibition Locations: Robert Lehman Wing and Anna Wintour Costume Center

The Metropolitan Museum of Art announced today that The Costume Institute’s spring 2016 exhibition will be manus x machina: fashion in an age of technology, on view from May 5 through August 14, 2016 (preceded on May 2 by The Costume Institute Benefit). Presented in the Museum’s Robert Lehman Wing and Anna Wintour Costume Center, the exhibition will explore the impact of new technology on fashion and how designers are reconciling the handmade and the machine-made in the creation of haute couture and avant-garde ready-to-wear.

Ensemble, Sarah Burton (British, born 1974) for Alexander McQueen (British, founded 1992), fall/winter 2012–13. Courtesy of The Metropolitan Museum of Art, Photo by Catwalking

Ensemble, Sarah Burton (British, born 1974) for Alexander McQueen (British, founded 1992), fall/winter 2012–13. Courtesy of The Metropolitan Museum of Art, Photo by Catwalking

Fashion and technology are inextricably connected, more so now than ever before,” said Thomas P. Campbell, Director and CEO of the Met. “It is therefore timely to examine the roles that the handmade and the machine-made have played in the creative process. Often presented as oppositional, this exhibition proposes a new view in which the hand and the machine are mutual and equal protagonists.”

manus x machina will feature more than 100 examples of haute couture and avant-garde ready-to-wear, dating from an 1880s Worth gown to a 2015 Chanel suit. The exhibition will reflect on the founding of the haute couture in the 19th century, when the sewing machine was invented, and the emergence of a distinction between the hand (manus) and the machine (machina) at the onset of industrialization and mass production. It will explore the ongoing rhetoric of this dichotomy in which hand and machine are presented as discordant instruments in the creative process, and will question this oppositional relationship as well as the significance of the time-honored distinction between the haute couture and ready-to-wear.

Wedding dress, Karl Lagerfeld, (French, born Hamburg, 1938) for House of Chanel (French, founded 1913), fall/winter 2014–15 haute couture, front view. Courtesy of The Metropolitan Museum of Art, Photo by Catwalking

Wedding dress, Karl Lagerfeld, (French, born Hamburg, 1938) for House of Chanel (French, founded 1913), fall/winter 2014–15 haute couture, front view. Courtesy of The Metropolitan Museum of Art, Photo by Catwalking

Wedding dress, Karl Lagerfeld, (French, born Hamburg, 1938) for House of Chanel (French, founded 1913), fall/winter 2014–15 haute couture, back view. Courtesy of The Metropolitan Museum of Art, Photo by Catwalking

Wedding dress, Karl Lagerfeld, (French, born Hamburg, 1938) for House of Chanel (French, founded 1913), fall/winter 2014–15 haute couture, back view. Courtesy of The Metropolitan Museum of Art, Photo by Catwalking

The Robert Lehman Wing galleries on the Museum’s first floor and court level will present a series of pairings of handmade haute couture garments and their machine-made ready-to-wear counterparts. The galleries will be arranged enfilade (an axial arrangement of doorways connecting a suite of rooms with a vista down the whole length of the suite.), with a suite of rooms reflecting the traditional structure of a couture atelier and its constituent petites mains workshops for embroidery, feathers, pleating, knitting, lacework, leatherwork, braiding, and fringe work. These will be contrasted with ensembles incorporating new technologies including 3D printing, laser cutting, thermo shaping, computer modeling, circular knitting, ultrasonic welding, and bonding and laminating.

Evening dress, Yves Saint Laurent (French, 1936-2008), 1969–70; The Metropolitan Museum of Art, Gift of Baron Philippe de Rothschild, 1983 (1983.619.1a, b) © The Metropolitan Museum of Art

Evening dress, Yves Saint Laurent (French, 1936-2008), 1969–70; The Metropolitan Museum of Art, Gift of Baron Philippe de Rothschild, 1983 (1983.619.1a, b)
© The Metropolitan Museum of Art

Dress, Silicon feather structure and moldings of bird heads on cotton base, Iris van Herpen (Dutch, born 1984), fall/winter 2013–14. Courtesy of The Metropolitan Museum of Art, Photo by Jean-Baptiste Mondino

Dress, Silicon feather structure and moldings of bird heads on cotton base, Iris van Herpen (Dutch, born 1984), fall/winter 2013–14. Courtesy of The Metropolitan Museum of Art, Photo by Jean-Baptiste Mondino

In a departure from previous exhibits, The Anna Wintour Costume Center galleries will present a series of “in process” workshops, including a 3D-printing workshop where visitors will witness the creation of 3D-printed garments during the course of the exhibition.

Coat, Paul Poiret, (French, 1879–1944), ca. 1919; The Metropolitan Museum of Art, Gift of Mrs. David J. Colton, 1961 (C.I.61.40.4). © The Metropolitan Museum of Art

Coat, Paul Poiret, (French, 1879–1944), ca. 1919; The Metropolitan Museum of Art, Gift of Mrs. David J. Colton, 1961 (C.I.61.40.4). © The Metropolitan Museum of Art

Designers in the exhibition will include Gilbert Adrian, Azzedine Alaïa, Christopher Bailey (Burberry), Cristobal Balenciaga, Boué Soeurs, Sarah Burton (Alexander McQueen), Pierre Cardin, Hussein Chalayan, Gabrielle “Coco” Chanel, Giles Deacon, Christian Dior, Alber Elbaz (Lanvin), Mariano Fortuny, John Galliano (Christian Dior, Maison Margiela), Nicolas Ghesquière (Balenciaga, Louis Vuitton), Hubert de Givenchy, Madame Grès, Lazaro Hernandez and Jack McCollough for Proenza Schouler, Yoshiki Hishinuma, Marc Jacobs (Louis Vuitton), Charles James, Christopher Kane, Mary Katrantzou, Rei Kawakubo (Comme des Garçons), Karl Lagerfeld (Chanel), Helmut Lang, Mary McFadden, Issey Miyake, Miuccia Prada, Paul Poiret, Paco Rabanne, Noa Raviv, Yves Saint Laurent (Christian Dior, Yves Saint Laurent), Mila Schön, Raf Simons (Jil Sander, Christian Dior), Maiko Takeda, Riccardo Tisci (Givenchy), threeASFOUR, Philip Treacy, Iris van Herpen, Madeleine Vionnet, Alexander Wang, Junya Watanabe, and others.

Traditionally, the distinction between the haute couture and prêt-à-porter was based on the handmade and the machine-made, but recently this distinction has become increasingly blurred as both disciplines have embraced the practices and techniques of the other,” said Andrew Bolton, Curator in The Costume Institute. “manus x machina will challenge the conventions of the hand/machine dichotomy, and propose a new paradigm germane to our age of digital technology.

Jonathan Ive, Apple’s Chief Design Officer, said, “Both the automated and handcrafted process require similar amounts of thoughtfulness and expertise. There are instances where technology is optimized, but ultimately it’s the amount of care put into the craftsmanship, whether it’s machine-made or hand-made, that transforms ordinary materials into something extraordinary.” (Apple is the main sponsor of manus x machina.)

In celebration of the exhibition opening, the Museum’s Costume Institute Benefit, also known as the Met Gala, will take place on Monday, May 2, 2016. The evening’s co-chairs will be Idris Elba, Jonathan Ive, Taylor Swift, and Anna Wintour. Nicolas Ghesquière, Karl Lagerfeld, and Miuccia Prada will serve as Honorary Chairs. This event is The Costume Institute’s main source of annual funding for exhibitions, publications, acquisitions, and capital improvements.


manus x machina is organized by Andrew Bolton, Curator of The Costume Institute. Shohei Shigematsu, Director of OMA New York, will lead the exhibition design in collaboration with the Met’s Design Department. Raul Avila will produce the Benefit décor, which he has done since 2007. The exhibition is made possible by Apple. Additional support is provided by Condé Nast.

A publication by Andrew Bolton will accompany the exhibition. It will be published by The Metropolitan Museum of Art and distributed by Yale University Press, and will be available in early May 2016.

A special feature on the Museum’s website, www.metmuseum.org/manusxmachina, provides information about the exhibition. (Follow on Facebook.com/metmuseum,
Instagram.com/metmuseum, and Twitter.com/metmuseum to join the conversation about the exhibition and gala benefit. Use #manusxmachina, #CostumeInstitute, and #MetGala on Instagram and Twitter.)

Academy of Arts University Fashion Design and Textile Design Students Shine at Fall/Winter 2014 New Fashion Week

Designer Profile and Inspiration Images by David Dooley/Runway Images by Randy Brooke/WireImage 

Every designer dreams of showing their collection at Mercedes- Benz Fashion Week, and on Friday, February 7th that dream came true for 13 designers from the School of Fashion at Academy of Art University. “Since 2005, the School of Fashion has premiered the collections of students and recent graduates during New York Fashion Week. Part of our commitment to our students is to help launch their careers and have their work seen by industry professionals,” said Dr. Elisa Stephens, President of Academy of Art University. “Debuting these designers’ collections during Mercedes-Benz Fashion Week is an incredible opportunity for each of them.”

With more than 18,000 students, Academy of Art University is the nation’s largest accredited private art and design university. Established in 1929, the school offers accredited A.A., B.A., B.F.A., M.A., M.F.A., and M.Arch degree programs in Acting, Advertising, Animation & Visual Effects, Architecture, Art Education, Art History, Fashion, Fine Art, Game Design, Graphic Design, Illustration, Industrial Design, Interior Architecture & Design, Jewelry & Metal Arts, Landscape Architecture, Motion Pictures & Television, Multimedia Communications, Music Production & Sound Design for Visual Media, Photography, Visual Development, and Web Design & New Media. Online degrees are offered in most areas. Academy of Art University is an accredited member of WASC (Western Association of Schools and Colleges), NASAD (National Association of Schools of Art and Design), NAAB (Master of Architecture), and CIDA (Council for Interior Design Accreditation offered for BFA-IAD, MFA-IAD).

For the Fall 2014 season, 13 designers presented eight collections, four of which were collaborations between Fashion Design and Textile Design students. In total, six womenswear and two menswear collections were presented at the Academy of Art University Mercedes-Benz Fashion Week show.

Jaci_Hodges_Nisha_Hanna_Btesh_lineup

Jaci Hodges, M.F.A. Fashion Design, collaborated with Nisha Hanna Btesh, B.F.A. Textile Design, on a 1960s-inspired womenswear collection that was created with the use of Shibori, the Japanese technique of resistance felting. Originally from Austin, TX, Jaci holds a B.B.A. in Marketing with a minor in Philosophy. Additionally, she recently completed a design internship with gr.dano, a Bay Area ready-to-wear company co-founded by fellow alumna Jill Giordano. Nisha is a California native, born and raised in San Diego. Jaci and Nisha were inspired by the excess of prints worn during the late 1960s, in particular to those seen on the Brady Bunch, and the costumes worn by Mia Farrow in the film Dandy in Aspic.

Frank_Tsai_Andrea_Nieto_lineup

Frank Tsai, M.F.A. Fashion Design, collaborated with Andrea Nieto, B.F.A. Textile Design, on a menswear collection inspired by the mood and emotion of an international photography collection, “Beauty in Decay,” personal struggle, raw emotion, and the different stages of the healing process. Frank was born and raised in Kaohsiung, Taiwan, earned a B.S. Degree in Fashion Design and Merchandising, was awarded high honors for his undergraduate fashion show, and worked as the Marketing Manager for FU YU Clothing Company. Andrea grew up in Cali, Valle del Cauca, Colombia, is on the Academy of Art University President’s Honor List, was awarded a $10,000 scholarship through the YMA Scholarship Fund as a Geoffrey Beene National Scholar, and recently finished a design internship at BCBGMAXAZRIA. Continue reading

TRAVELLING IN STYLE WITH THE NEW LOUIS VUITTON DAMIER SIGNATURE SPRING/SUMMER 2013 COLLECTION

Louis Vuitton Damier Signature Spring-Summer 2013 Collection (Credit: www.louisvuitton.com)

Louis Vuitton Damier Signature Spring-Summer 2013 Collection (Credit: http://www.louisvuitton.com)

Building upon a heritage of a traveling in ease and sophisticated style, LOUIS VUITTON has revamped and remodeled their DAMIER SIGNATURE COLLECTION for the spring/summer 2013 season. The LOUIS VUITTON label was founded by Louis Vuitton in 1854 on Rue Neuve des Capucines in Paris, France. Louis Vuitton had observed that the HJ CAVE OSILITE trunk could be easily stacked and in 1858, Vuitton introduced his flat-bottom trunks with (with his then signature) Trianon canvas, making them lightweight and airtight. Before the introduction of Vuitton’s trunks, rounded-top trunks were used, generally to promote water run-off, and thus could not be stacked. It was Vuitton’s gray Trianon canvas flat trunk that allowed the ability to stack with ease for voyages. Many other luggagemakers imitated LV’s style and design. (Even then, back in the beginning, the brand was one of the most copied in the world!Continue reading