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

Thomas Pink Launches New Men’s Dress Shirt Range

Modern British Shirt Maker Thomas Pink puts business first this season with the launch of its new, premium shirting collection designed to address the sartorial needs of professional gentlemen. Fashioned to help savvy executives scale the corporate ladder while navigating its varying dress codes, the business assortment includes seven distinctive shirt options in a range of colors, fits, fabrics and price points.thomas-pink-b

Thomas Pink was founded in London in 1984 by the Mullen brothers, whose founding inspiration was the history of Mr. Pink, the 18th century tailor credited as the originator of ‘hunting pink‘ – referring to the scarlet jackets of hunt staff. The Mullen brothers appreciated the fundamental quirk of British humor that something so obviously red could be referred to as Pink. This quirk so appealed to them that they saw it as a tension right at the heart of the brand they were founding – namely a men’s brand called PINK – an obviously feminine color. (Moet Hennessy Louis Vuitton acquired the brand in 1999.)

Our customers are movers and shakers whose high standard of dress is as strong as their work ethic,” said Jonathan Heilbron, Global CEO for Thomas Pink.From first job to CEO, our business shirting collection offers the exceptional quality and fit our customers demand in a range of prices that allows them to graduate through the brand as they progress in their careers.”

From business and casual shirting to evening and Made To Order shirting, PINK shirts are made using traditional, time-honored methods with exclusive fabrics from world-renowned mills. Detail is everything – the collars are hand turned and are composed of up to 14 individual pieces. Pink shirts are available in Classic, Slim and Super Slim Fit and in addition, the brand also offers tailoring, separates, knitwear and accessories.

Celebrated for innovative design, Thomas Pink made its name with the renowned original Classic Fit shirt. The style is a modern take on the classic Jermyn Street cut and is generously designed for style and comfort. It features a long tail that stays tucked, as well as signature PINK gussets. Since then, Thomas Pink has launched a number of pioneering shirting solutions – including the Athletic Fit and the Independent collar. Today, Thomas Pink is a modern British shirt maker with over 100 stores worldwide and flagships in London’s Jermyn Street, Madison Avenue, New York and Rue Francois Premier, Paris.

TP-1984 Duke shirt in pale blue

Thomas Pink made in the UK 1984 Duke shirt in pale blue with Eden Stripe knit tie #outfox (PRNewsFoto/Thomas Pink)

The new collection features enough design options to please even the choosiest chap. Shirts are offered in different collar styles – spanning from semi and extreme cutaway to Winchester and Independent, a choice of double or button cuffs, and in an office-friendly palette of white, blue and pink along with subtle stripes and checks. A sprinkling of seasonal Jermyn Street design references throughout the collection satisfies current trend-seekers, while unique brand details such as the PINK thread sewn on the last placard button and PINK buttons on the sleeve gauntlets distinguish the wearer as someone who values a well-made shirt.

The collection includes the following:

The Bulldog: As robust as its namesake, the Bulldog is a keenly priced shirt designed to withstand the most hectic of workdays and still look fresh for happy hour. It is crafted out of a cotton pinpoint 40s single by two-fold 80s fabric with substantial buttons chosen for strength and durability, and sewn with extra-long thread. The Bulldog is offered in classic and slim fit for $95.

Thomas Pink Bulldog Llewellyn Stripe shirt

Thomas Pink Bulldog Llewellyn Stripe shirt in white/pink worn with the Greg twill suit in navy and the Elephant & Castle tie #outfox (PRNewsFoto/Thomas Pink)

The Traveller: The ultimate road warrior, the Traveller is Thomas Pink’s most technical shirt. It features an innovative new protective finish that is activated when washed to ensure that the collar and cuffs maintain a ‘box fresh’ appearance. The shirt’s unique easy-care finish minimizes the need for ironing and maintains a permanent crease on the sleeve. The Traveller is crafted out of two-fold 80s cotton and has an adjustable button cuff. It is available in classic fit and slim fit options for $130.

The Sterling: Named for the original silver currency of the British Empire, the Sterling is the embodiment of PINK quality and attention to detail. The collection is offered in a choice of two-fold 100s cotton poplin, Royal Oxford, Twill and Herringbone all of which include such iconic brand features as a PINK buttonhole inside the double cuff and a PINK under collar and center front. The Sterling is available in classic fit, slim fit and super slim fit options for $185.

The 1984: This special shirt is a celebratory reproduction of the first ever shirt made by Thomas Pink’s founders, the Mullen brothers, in 1984. Crafted out of Italian two-fold 100s cotton from Albini [the first mill Thomas Pink ever worked with] and proudly made in the UK, The 1984 is a luxurious option for the discerning businessman. Offered in classic and slim fit for $225, the 1984 is also available with an Independent collar – a collar specifically engineered to be worn without a tie.

The 1984 non-iron: The perfect combination of luxury and performance, the 1984 non-iron reinforces Thomas Pink’s roots as a shirting innovator. To ensure the highest standards of non-iron performance, the 100% cotton poplin in the shirt’s compact yarns has been treated with a specialized non-iron finish and pucker free technology. A must-have for the over-scheduled executive, the 1984 non-iron is also proudly made in the UK. It is available in classic and slim fit for $225. Continue reading

Glenmorangie Single Malt Scotch Whisky Partners With Luxury Shirt Brand Thomas Pink To Curate The ‘Perfect Pairings’

Glenmorangie Single Malt Scotch Whisky has partnered with luxury shirt brand Thomas Pink to present three distinct ‘perfect pairings’ of their Unnecessarily Well Made brands.

Glenmorangie shares many values with Thomas Pink, from a proud history to only using the finest ingredients and a relentless dedication to excellence. It is in celebration of this Unnecessarily Well Made approach to creation that the two brands have partnered to present three unique pairings of Glenmorangie Single Malt and Thomas Pink shirts, each representing a distinct personality and highlighting the rich diversity within the Glenmorangie portfolio.

The Classic Gentleman ($234.00) features a must have for any Scotch drinker, Glenmorangie The Original, paired together with Thomas Pink’s Classic White shirt, the hero of any gentleman’s wardrobe. This package is tailored to fit a knowledgeable and sophisticated man who is eternally classic, just like the original expression of Glenmorangie’s smooth and complex Single Malt.

Glenmorangie The Original is the original expression of our elegant, floral spirit and the real backbone of the Glenmorangie range. Our ten year old single malt is produced by marrying the delicate spirit of Scotland’s tallest stills with first and second-fill American white oak casks. Glenmorangie Original’s soft hint of vanilla mingles with the scent of citrus and ripening peaches. Experience bursts of flowery fruitiness that ripple across the palate for a clean finish with hints of orange.

The Classic White Shirt by Thomas Pink is made of 100% cotton, in fine 2-fold fabrics. With available styles ranging from weekend casual to formal eveningwear, it is truly the hero and mainstay of any gentleman’s wardrobe.

The Package will include Glenmorangie Original and a Thomas Pink gift card in the amount of $185, with a‘Classic Gentleman’ invitation to select the perfect fitting classic white shirt at your local Thomas Pink store. Gift Card can also be redeemed at http://www.ThomasPink.com. Please allow 10 business days for delivery.

The Discerning Adventurer ($269.00) features Glenmorangie Lasanta Sherry Cask Finish, a 12 year old Single Malt extra matured in Oloroso Sherry casks, coupled with Thomas Pink’s Bengal Stripe Shirt collection, a brightly colored line which takes its inspiration from the rare and beautiful fabrics associated with East India. This pairing is perfectly suited for a refined and confident man who indulges in life’s pleasures and enjoys new discoveries.

Elegant but full bodied this whisky has spent ten years maturing in American white oak ex-bourbon barrels before being extra-matured for a further two years in Oloroso Sherry casks from Jerez in Spain. Lasanta is Gaelic for warmth and passion, a reminder not just of the Spanish provenance of these Oloroso sherry butts, but also a reflection of this expressions lusciously soft texture and deep, enticingly sweet aroma. For luxury spirit drinkers who like to experiment are confident in their choices and have an ability to inspire the mood of the group.

Thomas Pink brings together the best in Jermyn Street heritage and contemporary design, as they have reworked the classic Bengal Stripe, a shirting classic around since the early nineteenth century, using exquisite 120s cloth from a renowned Italian mill in deep painterly hues contrasted with optic white.

The Package will include Glenmorangie Lasanta and a Thomas Pink gift card in the amount of $195, with a ‘Discerning Adventurer’ invitation to select the perfect fitting Bengal Stripe shirt at your local Thomas Pink store. Gift Card can also be redeemed at http://www.ThomasPink.com. Please allow 10 business days for delivery.

The Ultimate Perfectionist ($579.00) celebrates 170 years of dedication to excellence, since Glenmorangie’s founding in 1843. This package joins together Glenmorangie Signet, the masterpiece of the portfolio alongside Thomas Pink’s Imperial Collection, a line of skillfully crafted shirts made from the finest fabric in the company’s range. This exquisite pairing fits the ambitious man who seeks out precious and rare items and goes above and beyond to experience the best that life has to offer.

170 years in the making, Glenmorangie Signet is the culmination of a lifetime’s experience. A fusion of unique and rare elements, it is a blend of Glenmorangie’s oldest whisky – distilled over thirty years ago when malting still occurred on site – and spirit matured in a selection of the world’s finest casks. Glenmorangie signet is undoubtedly the richest whisky in the Glenmorangie range.

An exercise in luxury shirting, the Thomas Pink Imperial Collection is beautifully crafted using Pink’s Imperial 170s and 200s fabric, the finest yarn count in their range. This pure cotton has the weightlessness of silk and is woven exclusively for Pink by a renowned Italian mill. With an ultra-smooth look and feel, this ultra-fine fabric requires the utmost skill and craftsmanship to construct the Thomas Pink Imperial Collection.

The Package will include Glenmorangie Signet and a Thomas Pink gift card in the amount of $350, with a ‘Ultimate Perfectionist’ invitation to select the perfect fitting Imperial shirt at your local Thomas Pink store. Gift Card can also be redeemed at http://www.ThomasPink.com. Please allow 10 business days for delivery.

Maxime Balay, Glenmorangie’s Brand Director, said, “We are excited to partner with Thomas Pink. Like Glenmorangie, Thomas Pink has a long standing history steeped in tradition. We feel that they share in our relentless dedication to quality and craftsmanship whilst always keeping perfection in mind.”

Glenmorangie and Thomas Pink will celebrate their partnership with a private shopping event at the Thomas Pink New York Flagship location where guests will be invited to experience these pairings, and taste the featured Glenmorangie expressions with Glenmorangie Master Brand Ambassador, David Blackmore. The three curated parings are available on Reserve Bar until the end of April. http://www.ReserveBar.com//Glenmorangie-Thomas-Pink

Additionally, Glenmorangie is giving one lucky winner and a guest a chance to win a trip to the United Kingdom for a custom Thomas Pink & Glenmorangie experience.  The winner will enjoy personalized shopping at the Thomas Pink flagship store on Jermyn St. in London, and fly to Scotland to visit the Glenmorangie Distillery to experience Glenmorangie’s pursuit of perfection first hand.  For more information and to enter please visit http://www.glenmorangiesweeps.com/thomaspink.

Walpole British Luxury and Vacheron Constantin host the first ‘CRAFTED: MAKERS OF THE EXCEPTIONAL’ Showcase

Date: 4th – 6th April 2013

Time: 10am – 6pm

Location: Somerset House West Wing

Admission: Free for the public

London, England– In celebration of outstanding British craftsmanship, Walpole British Luxury and Vacheron Constantin will host the first ‘CRAFTED: MAKERS OF THE EXCEPTIONAL’ Showcase for the public at Somerset House West Wing. From the stitching on a calf-skin leather handbag to the intricate metalwork on a statement mirror, expert craftsmanship is at the heart of all luxury goods. The showcase offers a unique insight into the excellence of fine craft by elevating the time honored expertise, intimate knowledge and captivating interactions between art, design and skill of the hand. From Thursday 4th to Saturday 6th April, a collection of 20 of Britain’s most talented and pioneering artisans will demonstrate their passion, dedication and expertise, bringing to life the creative process, from exquisite and rare raw material to desirable and valuable finished work. Admission is free and there is no need to reserve tickets. For more information about the event please visit www.craftedshowcase.co.uk.

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Guests attend the Crafted Makers of the Exceptional Showcase launch>> at Somerset House on April 3, 2013 in London, England. (Eamonn M. McCormack/Getty Images)

Guests attend the Crafted Makers of the Exceptional Showcase launch>> at Somerset House on April 3, 2013 in London, England. (Eamonn M. McCormack/Getty Images)

Since 1990, Walpole British Luxury has been dedicated to supporting the British Luxury industry. Founded by flagship British Walpole_IDENTITYcompanies including Chewton Glen, DAKS, Financial Times and William Grant & Sons, Walpole furthers the interests of the British luxury industry. Named after great British statesman, patron of the arts and promoter of overseas trade, Sir Robert Walpole, the organisation provides a strong voice for the finest British brands in today’s competitive global luxury market.

At Walpole British Luxury we understand that luxury without exceptionally talented makers or outstanding materials is an empty promise, hence our commitment to the preservation and development to the craftsmanship skills’ said Julia Carrick, Chief Executive of Walpole British Luxury.

General view of the Crafted Makers of the Exceptional Showcase launch>> at Somerset House on April 3, 2013 in London, England.

General view of the Crafted Makers of the Exceptional Showcase launch at Somerset House on April 3, 2013 in London, England.

Walpole promotes, develops and represents the British luxury industry in partnership with its members – over 180 of Britain’s most prestigious companies drawn from the fashion, retail, jewelry, food, drink, leisure, automotive and media sectors, including Alfred Dunhill,  Alexander McQueen, Boodles, Burberry, Clive Christian, Chivas Brothers, Ettinger, The Gleneagles Hotel, Glenmorangie, Goodwood, Jimmy Choo, James Cropper Specialty Papers, Somerset House, Purdey, Savoir Beds, Silver Cross, Bremont, Thomas Pink, Vertu, Waterford, Wedgwood and Royal Doulton – Walpole represents the A to Z of internationally renowned and respected names, each bringing its own area of expertise and style to this most British of associations. Continue reading