The luxe powerhouse said all its fashion and leather goods monikers had strong years in 2017.
LVMH Moët Hennessy Louis Vuitton
In a Nutshell: Luxury goods giant LVMH Moët Hennessy Louis Vuitton said despite unfavorable currencies and geopolitical uncertainties, it was well-equipped to continue its growth momentum across all business groups in 2018 after a strong finish to 2017. The group will maintain a strategy focused on developing its brands by continuing to build on strong innovation and investments, as well as a constant quest for quality in their products and their distribution.
Among its fashion and leather goods brands, Fendi continued to grow strongly; Loro Piana, Céline, Loewe, Kenzo and Berluti made good progress, and Marc Jacobs strengthened its product offering and continued its restructuring, LVMH said.
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Sales: Revenue for the year rose 13 percent to 42.6 billion euros in ($52.77 billion), lifted by strong growth in the company’s fashion and retailing divisions, notably its signature Louis Vuitton brand. The Fashion and Leather Goods business group achieved organic revenue growth of 13 percent in 2017 to reach 15.47 billion euros ($19.45 billion). Louis Vuitton continued to demonstrate outstanding creativity across all of its businesses, maintaining a good balance between innovations and the strengthening of its iconic product lines, the company said.
Earnings: Profit from recurring operations grew 18 percent to 8.29 billion euros ($10.27 billion). The Fashion & Leather Goods unit saw profits rise 27 percent to 4.91 billion euros ($6.08 billion) for the year.
CEO’s Take: Bernard Arnault, chairman and chief executive officer, said: “LVMH achieved another record year. The excellent performance, to which all our businesses contributed, is due in part to the buoyant environment, but above all to the remarkable creative strength of our brands and their ability to constantly reinvent themselves…All [divisions] continue to assert these core values while maintaining rigorous execution of their strategies on the ground. In an environment that remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2018, our leadership in the universe of high quality products.”