LVMH announces record revenue of 14 billon Euros in 2005 up 11% over 2004
LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, achieved revenue of EUR 14 billion in 2005, representing growth of 11% over 2004. In the fourth quarter, revenue increased by 13% to reach EUR 4 311 million. In December, LVMH posted record revenue with an exceptionally strong year-end, most notably at Louis Vuitton and Wines & Spirits, compared to the already strong organic growth recorded during the fourth quarter of 2004. All geographic regions where the Group is present increased their revenue, with an acceleration of growth in the US, Asia and Europe.
By business group, the progress was as follows:
|In million euros (IFRS)||2005||2004||Variation 2005/2004|
|Wines & Spirits||2 644||2 259||+ 17 %||+ 11 %|
|Fashion & Leather Goods||4 812||4 366||+ 10 %||+ 12 %|
|Perfumes & Cosmetics||2 285||2 128||+ 7 %||+ 7 %|
|Watches & Jewelry||572||493||+ 16 %||+ 17 %|
|Selective Retailing||3 648||3 276||+ 11 %||+ 13 %|
|Other activities and eliminations||(52)||(41)||-||-|
|Total||13 909||12 481||+ 11 %||+ 11 %|
* With a comparable structure and at constant exchange rates.
Wines & Spirits recorded organic revenue growth of 11% in 2005. The product mix has been further improved thanks to the quality and high-end positioning of the division’s portfolio of champagne brands and to strong momentum in innovation. Furthermore, the business group benefited from close adherence to its pricing policies. Moët & Chandon consolidated its European leadership and saw strong development in Japan, most notably with the success of the Moët Rosé. Veuve Clicquot, Krug and Dom Pérignon performed particularly well in the US and Japan. Hennessy cognac saw strong volume growth of 9% in 2005. The high-end ranges achieved the strongest growth. Russia, the US and China were the best performing markets. Fashion & Leather Goods recorded organic revenue growth of 12% in 2005. Louis Vuitton achieved double-digit organic revenue growth in 2005 while further consolidating its market leadership position with exceptional performance in both the US and Asia. The year-end saw particularly strong revenue for the brand as it recorded its best ever month of December. 2005 was highlighted by a host of new leather goods products, created by Marc Jacobs, for which demand is so strong that it still cannot be fully satisfied, and by the launch of Louis Vuitton’s first range of sunglasses, which met with instant success. Louis Vuitton also opened its new “maison” Vuitton on the Champs Elysées in Paris, for which the global impact has been enormous. In addition, 2005 confirmed the high-growth potential of several brands such as Marc Jacobs and Pucci, and the outstanding development of Fendi. Perfumes & Cosmetics revenue was bolstered by the successful launches of the Dior perfumes Miss Dior Chérie and Dior Homme, and the lipstick KissKiss by Guerlain. At Christian Dior, the make-up ranges were immensely successful while the perfume J’Adore was confirmed as one of the greatest global success stories in perfumery. BeneFit Cosmetics, Fresh and Acqua di Parma each continued to demonstrate their remarkable performance in 2005. Watches & Jewelry achieved strong organic revenue growth of 17%. The LVMH’s brands gained significant market share in all strategic regions, most notably in the US, Asia and Japan. The iconic lines, such as Link, Carrera and Aquaracer by TAG Heuer, the Open concept by Zenith and the Liens and Class One lines by Chaumet, have been strengthened. Dior watches has continued to increase revenue with the launch of the Christal line. DFS achieved good revenue growth in 2005 and reaped the rewards of its efforts to develop its Asian client base. The success of the Galleria in Okinawa contributed to this growth. Sephora also recorded another growth year in France and across Europe, resulting in market share gains. In the US, for the fifth year in a row, Sephora delivered double-digit revenue growth on a comparable store basis. Sephora.com also continued to post particularly strong growth. Outlook For 2005, LVMH confirms a double-digit growth in its profit from recurring activities which will be announced on March 2nd, 2006. LVMH maintains its long-term growth strategy based on creativity and product quality. The Group will continue to focus on its star brands and to strive to further increase its profits. Thanks to its unique portfolio of brands and talented teams, the LVMH Group has the ability and resources to enable it to meet the economic and competitive challenges of 2006, just as it did during 2005. The Group has, once again, set an objective this year of achieving a tangible increase in profit from recurring operations. LVMH should thus continue to deliver market share gains and extend its leadership in the global luxury sector.