LVMH makes an excellent performance in 2014

LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of 30.6 billion Euros in 2014, an increase of 6% over the previous year. Organic revenue growth was 5%. Revenue in all business groups increased with the exception of Wines & Spirits which continued to be affected by the destocking of distributors in China. The group maintained strong momentum in the United States. Europe demonstrated good resilience despite the economic environment, while Asian countries displayed mixed trends.

In the fourth quarter, revenue increased by 10% compared to the same period of 2013. Organic growth was 5%. Profit from recurring operations reached 5,715 million Euros, resulting in an operating margin of 19%. Group share of net profit was 5,648 million.

Bernard Arnault, Chairman and CEO of LVMH, said: «The 2014 results confirm the capacity for LVMH to progress despite economic and currency uncertainty. Revenue and net profit reached new record levels. Commitment to excellence, a passion for quality and our capacity to innovate underpin our growth momentum and are all values epitomised by the Fondation Louis Vuitton and its emblematic building inaugurated in October 2014. The year was also marked by the arrival in the Group of Loro Piana, which saw a good performance. LVMH reached an agreement with Hermès and disposed of its stake in this company, in the form of a distribution to our shareholders. In 2014, all our maisons demonstrated outstanding flexibility. By adapting their strategies to global changes and by continuing to evolve, they have shown the creativity and entrepreneurship that drive them forward. In an uncertain economic environment, we can rely on the desirability of our brands and the agility of our teams to further strengthen our leadership in the world of high quality products.»

The Watches & Jewelry business group recorded organic revenue growth of 4%. Profit from recurring operations reached 283 million Euros. While jewelry revenue showed remarkable momentum, watches were penalized by the cautious purchasing behaviour of multi-brand retailers in an uncertain economic environment. Bulgari recorded strong growth driven by the success of its iconic lines and enhanced its watch collections with its new Lucea watch for women. TAG Heuer refocused on its core offering, adapting its organization accordingly. While maintaining tight control, the maisons continued to selectively invest in their distribution network and production capacity.

The Wines & Spirits business group recorded a decrease in organic revenue of 3% in 2014. Profit from recurring operations reached 1,147 million Euros. This situation is essentially explained by the evolution of cognac in China linked to the continued destocking by distributors. Against this background, Hennessy leveraged its extensive portfolio and global presence, in particular in the United States, where its growth remains strong.

The Fashion & Leather Goods business group recorded organic revenue growth of 3% in 2014. Profit from recurring operations reached 3,189 million Euros. For Louis Vuitton, 2014 was characterised by strong creative momentum, dominated by the enthusiastic reception of Nicolas Ghesquière’s first runway shows and of the new products. The celebration of the Monogram canvas as revisited by six leading designers and the inauguration of the Avenue Montaigne flagship store in Paris are among the highlights of the last quarter. 2014 marks the first year of Loro Piana’s integration into the business group.

The Perfumes & Cosmetics business group significantly outperformed the market with organic revenue growth of 7%. Profit from recurring operations amounted to 415 million Euros. The business group’s momentum was boosted by continuous innovation and sustained investments.

The Selective Retailing business group recorded organic revenue growth of 8%. Profit from recurring operations reached 882 million Euros in 2014.

Despite a climate of economic, currency and geopolitical uncertainties, LVMH is well-equipped to continue its growth momentum across all business groups in 2015. The Group will maintain a strategy focused on developing its brands by continuing to build on strong innovation and a constant quest for quality in their products and their distribution.   

Louis Vuitton Foundation

Established in 2006, the Louis Vuitton Foundation was created by the LVMH group and its houses. Based since October 2014 in a splendid building in the Jardin d’Acclimatation, a children’s amusement park in Paris, its aim is to promote art and culture and to maintain sponsorship activities undertaken since 1990 by the group. Architect Frank Gehry designed this glass edifice, which resembles a sailing ship, its canvasses swollen by the wind. Twelve glass «sails» ornament the building, creating a succession of white shapes on a pool of water holding wooded terraces. Each is shaped and contoured differently and is supported by a sophisticated series of steel and timber beams containing 3,600 glass panels. Located in the heart of this exceptional space are a permanent collection, temporary exhibitions and an auditorium.

February 19, 2015