Excellent performance of LVMH in 2015

Wines & Spirits: excellent growth in the United States and Japan, continued destocking in China

The Wines & Spirits business group recorded an increase in organic revenue of 6%. On a reported basis, revenue growth was 16%. Profit from recurring operations increased by 19%. Champagne experienced good growth in 2015 with an excellent performance in Europe, the United States and Japan. Hennessy demonstrated strong momentum in the United States across all ranges. In China, the second half of the year was marked by a rebound in revenue during a year characterised by continued destocking by distributors. Other spirits, Glenmorangie and Belvedere, continued a sustained growth.

Fashion & Leather Goods: strong creative momentum at Louis Vuitton, other brands strengthened their positions

The Fashion & Leather Goods business group recorded organic revenue growth of 4% in 2015. On a reported basis, revenue growth was 14%. Profit from recurring operations increased by 10%. Louis Vuitton had a remarkable year driven by the enthusiastic welcome of both its iconic products as well as the new models created by Nicolas Ghesquière. The Cruise Collection shown in Palm Springs and the exhibition at the Grand Palais in Paris retracing the history of the Maison were among the highlights for the year. Fendi recorded exceptional growth with the success of its iconic leather goods and the inauguration of Palazzo Fendi in the center of Rome. Loro Piana continued to invest in its production capacity and launched an exceptional new material combining vicuña wool and baby cashmere. Celine’s growth was driven by all its product categories. Givenchy and Kenzo each had a good year. Donna Karan and Marc Jacobs continued to work on changes to their product lines.

Perfumes & Cosmetics: market share gains and successful innovations

The Perfumes & Cosmetics business group recorded organic revenue growth of 7%. On a reported basis, revenue growth was 15%. Profit from recurring operations increased by 26%. Christian Dior accelerated its growth and increased worldwide market share. The new men’s fragrance Sauvage experienced unprecedented worldwide success. The vitality of its iconic perfumes J’adore and Miss Dior together with the excellent reception of new make-up products contributed to the Maison’s remarkable performance. Guerlain demonstrated profitable growth notably driven by the progress of  L’Homme Idéal and the continued success of the skincare ranges Orchidée Impériale and Abeille Royale. Benefit experienced strong growth driven by the originality of its products. Fresh and Make Up For Ever performed very well.

Watches & Jewelry: good growth in jewelry and cautious purchasing behaviour of multi-brand watch retailers

The Watches & Jewelry business group recorded organic revenue growth of 8%. On a reported basis, revenue growth was 19%. Profit from recurring operations increased by 53%. Bvlgari had an excellent year driven by its iconic creations and its new Diva and Lvcea collections. Bvlgari’s stores delivered excellent performances. The watch brands were impacted by the cautious purchasing behaviour of multi-brand retailers. TAG Heuer launched with enormous success its smartwatch developed in partnership with Google and Intel while continuing to develop its core offering. Given its strong growth, Hublot strengthened its production capacity with the opening of a second manufacturing facility in Nyon, Switzerland.

Selective Retailing: excellent performance at Sephora, DFS’s development impacted by economic changes in Asia

The Selective Retailing business group recorded organic revenue growth of 5%. On a reported basis, revenue growth was 18%. Profit from recurring operations increased by 6%. Sephora had an exceptional year in terms of revenue and results and continued to gain market share in all its markets. The omni-channel strategy accelerated with numerous initiatives in several countries. DFS continues to experience an uncertain environment in Asia as a result of currency and geopolitical changes, while its business in Japan benefited from a boom in Chinese tourism. Significant cost containment efforts were continued at DFS.

Confidence for 2016

Despite a climate of economic, currency and geopolitical uncertainties, LVMH is well-equipped to continue its growth momentum across all business groups in 2016. The Group will maintain a strategy focused on developing its brands by continuing to build on strong innovation and a constant quest for quality in their products and their distribution.

Driven by the agility of its teams, their entrepreneurial spirit, the balance of its different businesses and geographic diversity, LVMH enters 2016 with confidence and has, once again, set an objective of increasing its global leadership position in luxury goods.

Dividend increase of 11%

At the Annual Shareholders’ Meeting on April 14, 2016, LVMH will propose a dividend of €3.55 per share, an increase of 11%. An interim dividend of €1.35 per share was paid on December 3 of last year. The balance of €2.20 per share will be paid on April 21, 2016.

The LVMH Board met on 2 February 2016 to approve the financial statements for 2015.
Audit procedures have been carried out and the audit report is being issued.
Regulated information related to this press release, the presentation of annual results and the report “Financial Documents” are available at www.lvmh.fr.

APPENDIX: Revenue by business group and by quarter