LVMH’s Fashion & Leather Goods delivers strong performance

Worldwide
Published:  30 January, 2019

The French luxury conglomerate recorded revenue of €46.8 billion in 2018, a +10% increase over the previous year, with profit from recurring operations in the Fashion & Leather Goods category up +21% in the year.

LVMH’s profit from recurring operations amounted to €10 billion in 2018, up +21%, while operating margin was 21.4%, up 1.9 percentage points. Group share of net profit amounted to €6.4 billion in the year, up +18%. “The desirability of our brands, the creativity and quality of our products, the unique experience offered to our customers, and the talent and the commitment of our teams are the Group’s strengths and have once again made the difference”, said Bernard Arnault, Chairman and CEO, LVMH, adding that the Group will continue its strong dynamic of innovation, targeted investments, combining tradition and modernity, and long-term vision in 2019.

The Fashion & Leather Goods business group achieved a +15% organic revenue growth in 2018, with profit from recurring operations up +21%. Louis Vuitton is said to have delivered “an exceptional performance” across all regions. LVMH notes that Louis Vuitton is the only brand in the world to never hold sales nor sell through outlets. Christian Dior also had an excellent first full year within LVMH, while Fendi and Loro Piana “continued to assert their know-how throughout their collections” and Celine “entered a new and ambitious stage of its development” with the arrival of Hedi Slimane as Artistic, Creative and Image Director of the brand. Berluti and Rimowa “continued their dynamic momentum”.

Organic revenue growth for the Watches & Jewellery business group increased +12% in 2018, with profit from recurring operations up +37%. In the watchmaking sector, TAG Heuer is said to have 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, according to LVMH.

“In an uncertain geopolitical and monetary context, LVMH is well-equipped to continue its growth momentum across all business groups in 2019”, said the Group in a statement. “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.”