France : 2015 sales climb 16% at LVMH

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2015 sales climb 16% at LVMH

04
Feb '16

In 2015, revenue at luxury products group LVMH Moët Hennessy Louis Vuitton climbed 16 per cent over the previous year to €35.7 billion, while organic revenue growth was 6 per cent.

“The Group turned in strong momentum in Europe, the United States and Japan while other Asian countries demonstrated contrasting tendancies,” a LVMH press release stated.

“Profit from recurring operations reached €6,605 million in 2015, also up 16 per cent year on year, to which all business groups contributed,” the company said.

The Group's share of net profit was €3,573 million and excluding the capital gain realised in 2014 following the distribution of Hermès shares, Group share of net profit increased by 20 per cent.

In the fourth quarter of 2015, revenue rose 12 per cent compared to the same period of 2014, while organic growth stood at 5 per cent.

CEO Bernard Arnault said, “The 2015 results confirm the capacity for LVMH to progress and gain market share despite economic and geopolitical uncertainty.”

“Revenue and operating profit reached new record levels, while commitment to excellence, a passion for quality and our capacity to innovate underpin our growth momentum,” Arnault also added.

“All our Maisons demonstrated outstanding flexibility and by adapting strategies to global changes and by continuing to evolve, they showed the creativity and entrepreneurship that drive them forward,” he too stated.

Key highlights at LVMH from 2015 included; record revenue and profit from recurring operations and a good performance of wines & spirits in all regions with a normalisation of the situation in China.

Other highlights include; the success of both iconic and new products at Louis Vuitton, where profitability remains at an exceptional level and progress at fashion brands like Fendi, Céline, Givenchy and Kenzo.

In the reporting year, there was a remarkable momentum at Christian Dior which gained market share globally and excellent results at Bulgari and the success of TAG Heuer's refocusing strategy.

During the year under review, the company reported free cash flow of €3.7 billion, a surge of 30 per cent and a gearing of 16 per cent as of the end of December 2015. (AR)

Fibre2Fashion News Desk – India

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