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LVMH posts 4% revenue growth in 2008
06 Feb '09
5 min read
Watches & Jewelry: strengthened iconic lines
Following the growth seen in the first nine months of the year, Watches & Jewelry saw a slowdown in the last quarter. Profit from recurring operations was 118 million Euros. The good performance in Europe and Asia compensated in part for the slowdown in the American and Japanese markets.
TAG Heuer continued its worldwide roll-out of the Grand Carrera collections and launched a new range of high-end luxury mobile phones. At Montres Dior, automatic models have enhanced the Christal line, while Zenith strengthened its Manufacture Horlogère position. The acquisition of Hublot in 2008 is in keeping with a true logic of complementarity. Supported by its Big Bang collection, the brand saw double-digit revenue growth in all of its markets. Chaumet strengthened its jewelry lines Liens and Attrape-Moi. Fred confirmed the success of Force 10 and De Beers expanded its network of stores.
Selective Retailing: strong growth at Sephora
In 2008, Selective Retailing registered organic revenue growth of 9%. Profit from recurring operations was 388 million Euros.
DFS revenue grew slightly. The slowdown in Japanese tourism was offset by the momentum of other Asian clients. DFS benefited from this trend through the opening of the Macao Galleria and the airport concessions at Mumbai and Abu Dhabi. Opening new stores in these destinations requires short-term investment but constitutes an important source of future growth.
Sephora continued its strong momentum in 2008 which resulted in market share gains and a continued good level of profitability. Revenue growth on a same-store basis was steady. The brand is expanding its presence in key markets and continues the evolution of its existing store network. On-line sales have shown strong growth in France, the US and China. Sephora continued its differentiation strategy with a more innovative and exclusive product offering, complemented by a large range of in-store services and treatments.
Further market share gains in 2009
Taking into account the limited visibility on the depth and duration of the global economic and financial crisis, LVMH continues to apply a strong financial discipline in managing all of its businesses. The Group will concentrate its resources on the most profitable businesses and markets and will continue to pursue its strategy of internal growth by capitalizing on the leading positions of its brands.
Bolstered by the flexibility of its organization and the good balance between its different businesses and geographical presence, LVMH's objective in 2009 is to continue to increase its leadership of the worldwide luxury goods market.
Following the growth seen in the first nine months of the year, Watches & Jewelry saw a slowdown in the last quarter. Profit from recurring operations was 118 million Euros. The good performance in Europe and Asia compensated in part for the slowdown in the American and Japanese markets.
TAG Heuer continued its worldwide roll-out of the Grand Carrera collections and launched a new range of high-end luxury mobile phones. At Montres Dior, automatic models have enhanced the Christal line, while Zenith strengthened its Manufacture Horlogère position. The acquisition of Hublot in 2008 is in keeping with a true logic of complementarity. Supported by its Big Bang collection, the brand saw double-digit revenue growth in all of its markets. Chaumet strengthened its jewelry lines Liens and Attrape-Moi. Fred confirmed the success of Force 10 and De Beers expanded its network of stores.
Selective Retailing: strong growth at Sephora
In 2008, Selective Retailing registered organic revenue growth of 9%. Profit from recurring operations was 388 million Euros.
DFS revenue grew slightly. The slowdown in Japanese tourism was offset by the momentum of other Asian clients. DFS benefited from this trend through the opening of the Macao Galleria and the airport concessions at Mumbai and Abu Dhabi. Opening new stores in these destinations requires short-term investment but constitutes an important source of future growth.
Sephora continued its strong momentum in 2008 which resulted in market share gains and a continued good level of profitability. Revenue growth on a same-store basis was steady. The brand is expanding its presence in key markets and continues the evolution of its existing store network. On-line sales have shown strong growth in France, the US and China. Sephora continued its differentiation strategy with a more innovative and exclusive product offering, complemented by a large range of in-store services and treatments.
Further market share gains in 2009
Taking into account the limited visibility on the depth and duration of the global economic and financial crisis, LVMH continues to apply a strong financial discipline in managing all of its businesses. The Group will concentrate its resources on the most profitable businesses and markets and will continue to pursue its strategy of internal growth by capitalizing on the leading positions of its brands.
Bolstered by the flexibility of its organization and the good balance between its different businesses and geographical presence, LVMH's objective in 2009 is to continue to increase its leadership of the worldwide luxury goods market.
LVMH
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