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LVMH confirms soundness of its strategy in 2009
08 Feb '10
5 min read
Perfumes & Cosmetics: improvement in recurring operating margin
For Perfumes & Cosmetics, the fourth quarter saw a return to growth with organic revenue increasing by 2%, following the impact of destocking by several retailers in the first half. Profit from recurring operations stood at 291 million Euros, and current operating margin improved to reach 11% in 2009. Parfums Christian Dior continued to benefit in 2009 from the exceptional popularity of J'Adore. The performances of Miss Dior Chérie and of Eau Sauvage, as well as the ongoing momentum of Diorskin Nude, also strongly contributed to Dior's market share gains. Guerlain confirmed its growth in its priority markets, due notably to the popularity of the Rouge G lipstick and the promising start for its new perfume, Idylle. Parfums Givenchy benefited from the success of its Play and Ange ou Démon Le Secret perfumes. Benefit made considerable progress due to its international expansion.
Watches & Jewelry: targeted expansion and rigorous cost control
In Watches & Jewelry, an improvement in trends in the fourth quarter limited the fall in revenue for the year to 13%. Profit from recurring operations stood at 63 million Euros. Despite considerable destocking by retailers and the decline of the American and Japanese markets, the Watches & Jewelry brands consolidated their market share and maintained rigorous cost and inventory control.
TAG Heuer, sustained by the success of its collections, notably Carrera and Monaco, strengthened its position in all of its key markets. Hublot showed good resilience and production started at its new factory. Zenith celebrated the 40th anniversary of its El Primero movement. Montres Dior's Christal line continued its transition to the high-end of the market. The jewelry brands' own store networks demonstrated good resilience, benefiting from the success of iconic collections, such as Chaumet's Attrape-Moi and Liens, Fred's Force 10, and De Beers' solitaire diamonds.
LVMH is in an excellent position to once again strengthen its leadership in 2010
Taking into account the uncertainty of the strength of the economic recovery, LVMH will continue in 2010 to rigorously manage all of its businesses. Focused on further increasing its competitive advantages, the Group will continue its strong dynamic innovation and expansion in the most attractive markets.
Strengthened by the flexibility of its organization and the good balance of its business lines and geographic exposure, LVMH enters 2010 with confidence and has set itself the objective of increasing, once again, its leadership of the global luxury goods industry.
For Perfumes & Cosmetics, the fourth quarter saw a return to growth with organic revenue increasing by 2%, following the impact of destocking by several retailers in the first half. Profit from recurring operations stood at 291 million Euros, and current operating margin improved to reach 11% in 2009. Parfums Christian Dior continued to benefit in 2009 from the exceptional popularity of J'Adore. The performances of Miss Dior Chérie and of Eau Sauvage, as well as the ongoing momentum of Diorskin Nude, also strongly contributed to Dior's market share gains. Guerlain confirmed its growth in its priority markets, due notably to the popularity of the Rouge G lipstick and the promising start for its new perfume, Idylle. Parfums Givenchy benefited from the success of its Play and Ange ou Démon Le Secret perfumes. Benefit made considerable progress due to its international expansion.
Watches & Jewelry: targeted expansion and rigorous cost control
In Watches & Jewelry, an improvement in trends in the fourth quarter limited the fall in revenue for the year to 13%. Profit from recurring operations stood at 63 million Euros. Despite considerable destocking by retailers and the decline of the American and Japanese markets, the Watches & Jewelry brands consolidated their market share and maintained rigorous cost and inventory control.
TAG Heuer, sustained by the success of its collections, notably Carrera and Monaco, strengthened its position in all of its key markets. Hublot showed good resilience and production started at its new factory. Zenith celebrated the 40th anniversary of its El Primero movement. Montres Dior's Christal line continued its transition to the high-end of the market. The jewelry brands' own store networks demonstrated good resilience, benefiting from the success of iconic collections, such as Chaumet's Attrape-Moi and Liens, Fred's Force 10, and De Beers' solitaire diamonds.
LVMH is in an excellent position to once again strengthen its leadership in 2010
Taking into account the uncertainty of the strength of the economic recovery, LVMH will continue in 2010 to rigorously manage all of its businesses. Focused on further increasing its competitive advantages, the Group will continue its strong dynamic innovation and expansion in the most attractive markets.
Strengthened by the flexibility of its organization and the good balance of its business lines and geographic exposure, LVMH enters 2010 with confidence and has set itself the objective of increasing, once again, its leadership of the global luxury goods industry.
LVMH
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