LVMH Announced Revenue Growth in 2017 First Quarter

LVMH Moët Hennessy Louis Vuitton, the world’s leading high-quality products group, recorded revenue of 9.9 billion Euros for the first quarter 2017, an increase of 15%. Organic revenue growth* was 13% compared to the same period of 2016, an increase attributable to all business groups. Positive growth was achieved in Asia, Europe, and the US.lvmh-logo

During the first quarter, LVMH benefited from a favorable comparison base, particularly in Europe, where activity was affected last year by the impact of the November 2015 attacks in Paris. The trend currently observed cannot reasonably be extrapolated for the full year.

The Wines & Spirits Business Group recorded organic revenue growth of 13% in the first quarter of 2017. Champagne volumes increased by 7% over the period. Europe and the US markets continued to grow. Hennessy cognac saw volumes increase significantly which could impact the availability of stocks for the rest of the year. Momentum remains positive in the United States, while demand in China confirms the trends of 2016.

The Fashion & Leather Goods Business Group achieved organic growth of 15% in the first quarter of 2017. Louis Vuitton achieved a good start to the year, driven by creative momentum in all of its businesses. The recent Autumn-Winter show in the Marly courtyard at the Louvre was very well received. Fendi continues its good performance, supported by its leather and ready-to-wear lines. Céline, Kenzo, Loewe, and Berluti showed progress. Givenchy announced the arrival of a new Artistic Director. Marc Jacobs continued its product lines changes and its restructuring. Rimowa, which recently joined the LVMH Group, will be consolidated as of the second quarter.

In Perfumes & Cosmetics, organic revenue growth was 12% in the first quarter of 2017. Parfums Christian Dior recorded good growth with the success of its make-up and the continued vitality of its perfumes J’adore and Sauvage. At Guerlain, the launch of the new women’s fragrance Mon Guerlain, embodied by Angelina Jolie, was a highlight of the quarter. Parfums Givenchy benefited from the success of its lipstick lines, which had rapid development in Asia. Kat Von D, launched exclusively in January at Sephora in France, is growing well. Maison Francis Kurkdjian is joining the LVMH Group.

The Watches & Jewelry Business Group recorded organic revenue growth of 11% in the first quarter of 2017. Bvlgari gained market share and continued to innovate with new models in its emblematic jewelry lines. TAG Heuer successfully launched its new Connected Modular 45 watch. Several innovations presented by LVMH’s watch brands at the Baselworld watch fair were given an excellent reception, including a new edition of the Autavia by TAG Heuer, the new Octo Finissimo Automatic, and Serpenti Skin watches by Bvlgari and the Defy El Primero 21 by Zenith.

In Selective Retailing, organic revenue growth was 11% in the first quarter of 2017. Sephora gained market share around the world and continues to record revenue growth. The US market is growing well, China confirmed the trend already observed at the end of 2016. Momentum at DFS in Asia improved while the T Gallerias opened in Cambodia and Italy in 2016, continued their development.

In a particularly uncertain environment, LVMH will continue to focus its efforts on developing its brands, maintain strict control over costs and target its investments on the quality, excellence, and innovation of its products and their distribution. The Group will rely on the talent and motivation of its teams, diversification of its businesses and good geographical balance of its revenue to reinforce, once again in 2017, its global leadership position in luxury goods.

During the quarter and to date, no events or changes have occurred which could significantly modify the Group’s financial structure.

In million euros

Q1 2017

Q1 2016

% change
Q1 2017 / Q1 2016

 

 

 

 

Reported

Organic*

 

Wines & Spirits

1 196

1 033

+ 16 %

+ 13 %

 

Fashion & Leather Goods

3 405

2 965

+ 15 %

+ 15 %

 

Perfumes & Cosmetics

1 395

1 213

+ 15 %

+ 12 %

 

Watches & Jewelry

879

774

+ 14 %

+ 11 %

 

Selective Retailing

3 154

2 747

+ 15 %

+ 11 %

 

Other activities and
eliminations

(145)

(112)

 

Total LVMH

9 884

8 620

+ 15 %

+ 13 %

 

* with comparable structure and constant exchange rates 

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

Auctionata Presents “The Art Journey: Eleven Days, 16 Auctions, 20 Countries, 2000 Artworks”

Starting on November 27th, the leading online auction house Auctionata will take art lovers on an exciting journey to discover art from a broad range of nations, styles and artists: Over the course of eleven days, around 2,000 artworks will be offered for sale in 15 SPECIAL-THEMED LIVESTREAM AUCTIONS, with the crowning highlight auction ‘100 Masterworks‘ on December 7th. With this comprehensive series of art auctions, Auctionata is the first auction house to invite its international bidders on an excursion through the multi-faceted history of art, which can be followed from anywhere in the world. All auctions will be broadcasted via livestream and are accessible on www.auctionata.com or via the Auctionata Live iPhone App. The complete auction catalogue is available here: https://auctionata.com/intl/auction-calendar?tab=journeyAuctionata_The Art Journey_Nov 27 - Dec 7 2015

Auctionata brings the world of unique works of art, antiques and luxury collectibles to the internet. As the inventor of the livestream auction, Auctionata broadcasts auctions in real-time and provides an online auction room that is accessible to bidders worldwide via desktop and mobile devices. The house also offers all of the typical services of a traditional auction house via its website: Valuation, authentication, curation, auction and all related services, including a full authenticity guarantee. Sellers benefit from the free and non-binding online valuation, which gives a first quick perspective on potential auction results. Auctionata professionals and its global network of over 300 experts from more than 40 countries ensure a proper assessment and authentication of each object that goes to auction. The spectrum ranges from paintings, prints, sculptures and antiques to furniture, design objects and porcelain, to watches, jewelry, wine and even classic cars.

Auctionata 363 Lot 54- Jan X. Kaniewski, Miniature, Alexander Nikolaevich, 1839

Auctionata 363 Lot 54- Jan X. Kaniewski, Miniature, Alexander Nikolaevich, 1839

The journey starts on November 27th with Eastern European and Russian art. In two consecutive auctions, bidders will find paintings of renowned artists such as Franz Roubaud and Nikolai Bogdanov-Belsky, as well as decorative arts, porcelain, bronze, and silver objects and a particularly noteworthy collection of miniature paintings.

Auctionata 363 Lot 27, Plate from the Military Service of Tsar Nicholas I, 1836

Auctionata 363 Lot 27, Plate from the Military Service of Tsar Nicholas I, 1836

On November 28th, the journey will take bidders to the Netherlands, Belgium and Scandinavia, with an auction focusing on Old Master paintings, as well as 19th century artworks and expressive paintings from the 20th century. In the subsequent auction, works of the German masters of the 19th century, such as Christian Eduard Boettcher and Carl Spitzweg will be offered.

The next destination is Austria on November 30th, when a comprehensive range of paintings of Austrian artists of the 19th century, such as Johann N. Rauch, Albin Egger-Lienz, Herbert Gurschner and Carl Probst will go under the hammer. The following auction ‘German Art of the 20th Century‘ will present works by important representatives of both Impressionism and Expressionism, such as Otto Modersohn, Karl Schmidt-Rottluff and Max Ernst.

Auctionata, 363 Lot 44 - Konstantin F

Auctionata, 363 Lot 44 – Konstantin F. Juon (1875-1958), Lubyanka Square, Oil, 1920s

The auctions on December 1st continue with modern and contemporary art from Austria, featuring a particularly noteworthy collection of Hundertwasser prints. Moreover, the auction ‘German Zeitgeist: Post-War Art‘ will present several highlights, including works by Horst Antes, Martin Kippenberger and Herbert Zangs. Continue reading