LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of €53.7 billion in 2019, up 15%.
Organic revenue growth was 10%. Europe and the United States experienced good growth over the year, as did Asia, despite a difficult environment in Hong Kong in the second half of 2019.
Revenue growth in the fourth quarter was 12% compared to the same period in 2018. Organic revenue growth was 8% for the quarter. Restated for the non-recurring effects of the VAT increase in Japan and the stock movements of distributors of cognac in the US, the Group’s organic growth was at a similar level in the third and fourth quarters.
Profit from recurring operations amounted to €11.5 billion in 2019, up 15%, compared to an already high level in 2018. Operating margin reached a level of 21.4%. Group share of net profit amounted to €7.2 billion, up 13%.
The Watches and Jewelry business group recorded organic revenue growth of 3%. Profit from recurring operations were up 5%. The agreement with Tiffany & Co was a strategic highlight of the year. Bvlgari continued to perform very well and to strongly increase its market share. High jewelry and the iconic Serpenti, B.Zero 1 and Diva’s Dream lines enriched with many new products and the Fiorever collection launched at the end of 2018 contributed significantly to growth. In watchmaking, the Serpenti Seduttori watch was exceptionally well received. Chaumet’s growth was driven by the success of its iconic collections. As distribution evolves rapidly within the watchmaking sector, TAG Heuer continued to work with its partners to provide an increasingly selective and efficient distribution network, while pursuing its creative resurgence. Hublot recorded strong growth, driven by the Classic Fusion, Big Bang and Spirit of Big Bang lines.
The Wines & Spirits business group achieved organic revenue growth of 6%. Profit from recurring operations increased by 6%. The business group continued to pursue its value strategy based on a strong innovation policy, while accentuating its environmental and societal commitment.
The Fashion & Leather Goods business group achieved organic revenue growth of 17% in 2019. Profit from recurring operations was up 24%. Louis Vuitton continued to deliver an exceptional performance, to which all businesses and all clientele contributed. Iconic lines and new creations made a balanced contribution to revenue growth.
The Perfumes and Cosmetics business group achieved organic revenue growth of 9%, driven by the remarkable momentum of its major brands, notably Dior, Guerlain and Givenchy. Profit from recurring operations was up 1% after taking into account an exceptional depreciation of the product lines of certain young American brands.
The Selective Retailing business group achieved organic revenue growth of 5%. Profit from recurring operations was up 1%.
In an uncertain geopolitical context, LVMH is well-equipped to continue its growth momentum across all business groups in 2020. 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 2020 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 16th 2020, LVMH will propose a dividend of €6.80 per share, an increase of 13%.
February 06, 2020