Sales growth for LVMH

Organic revenue growth was 11%, and 12% excluding the impact of the closure of the Hong Kong airport concessions at the end of 2017. All business groups posted excellent performance.

Organic revenue growth in the fourth quarter was 10% (excluding the impact of the closure of the Hong Kong airport concessions). The quarter continued the trend that has been underway since the beginning of the year.

Profit from recurring operations amounted to €10 billion in 2018, up 21%. Operating margin reached a level of 21.4%, an increase of 1.9 percentage points. Group share of net profit amounted to €6.4 billion, up 18%.

The Watches & Jewelry business group recorded organic revenue growth of 12%. Profit from recurring operations was up 37%.

Bvlgari performed very well and gained market share. Its iconic jewelry and watchmaking lines Serpenti, Diva’s Dream, B.Zero1, Lvcea and Octo grew strongly. Among the new product launches of the year, the Octo Finissimo watch and the Fiorever jewelry collection were exceptionally well received. Chaumet’s growth was driven by the success of the Liens and Joséphine collections, particularly in Asia. The exhibition on its history at the Mitsubishi Ichigokan Museum in Tokyo was an immense success. In the watchmaking sector, TAG Heuer continued to develop its iconic lines and introduced a new variant of the smart watch. Hublot, which continued its progress, enjoyed strong growth in 2018 and considerable visibility as the FIFA World Cup Official Timekeeper.

The Wines & Spirits business group achieved organic revenue growth of 5%. Profit from recurring operations increased by 5%. The business group reaffirmed its leadership position by pursuing its value strategy and balanced geographic development.

The Fashion & Leather Goods business group achieved organic revenue growth of 15% in 2018. Profit from recurring operations was up 21%. Louis Vuitton delivered an exceptional performance, to which all businesses and regions contributed. Its creative strength lies notably in its iconic leather goods lines which are continuously rejuvenated, and in its ready-to-wear and shoe lines, designed by the respective Louis Vuitton Creative and Artistic Directors, Nicolas Ghesquière for the women’s collections and Virgil Abloh, who joined in 2018, for the men’s collections.

The Perfumes & Cosmetics business group achieved organic revenue growth of 14%, driven by the performance of its flagship brands. Profit from recurring operations was up 13%.

The Selective Retailing business group achieved organic revenue growth of 6%, up 12% excluding the Hong Kong airport concession closures. Profit from recurring operations was up 29%.

In an uncertain geopolitical and monetary context, LVMH is well-equipped to continue its growth momentum across all business groups in 2019. The Group will pursue its 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.

Driven by the agility of its teams, their entrepreneurial spirit, the balance between its different businesses and geographic diversity, LVMH enters 2019 with cautious confidence and once again, sets an objective of reinforcing its global leadership position in luxury goods.

At the Annual General Meeting on April 18, 2019, LVMH will propose a dividend of 6 euros per share, an increase of 20%.

February 14, 2019