Not out of fashion: LVMH hits €6bn annual profit mark for first time ever
Sales rebound in fourth quarter after a tough year for French luxury giant
Thursday 30 January 2014
Fashion fans flocked back to LVMH-owned brands in the final quarter of last year and the luxury group reported a 2 per cent rise in profit – hitting the €6bn annual profit figure for the first time.
Fashion and leather-goods sales at the group, that owns brands including Louis Vuitton and Fendi, jumped 5 per cent in the final quarter of 2013, up from a 4 per cent rise for the rest of the year.
Sales for the year hit €29.1bn – up 4 per cent on the previous year and profit reached €6.021bn – up 2 per cent on a comparable basis.
Although the results showed improvement in the fourth quarter of 2013, the annual sales growth is still well below a year ago when it reported a 19 per cent rise in sales for 2012.
This follows concerns that the luxury goods sector, and in particular LVMH, was suffering a slow down with demand in China waning. Some experts had criticised LVMH’s brands, such as Louis Vuitton, for becoming too ubiquitous.
The group had begun to rectify this by controlling its supply chain and launching a more expensive range of "very high quality leather products” where it today said “profitability remains at an exceptional level."
Experts now believe these remedies are beginning to improve the outlook for the group.
An analysts at UBS said: "We forecast an improvement in the (sales) growth of LVMH's fashion and leather division, reflecting our view that the turnaround of the all-important Louis Vuitton brand will bear fruit, while smaller brands like Marc Jacobs, Fendi, Céline and Berluti should start to benefit from increased investment."
Bernard Arnault, chairman and chief executive of LVMH, said: "2013 saw another excellent performance from LVMH despite exchange rate volatility and slower growth in the European markets.
A significant event during the year was the acquisition of Loro Piana. In 2014, LVMH intends to further strengthen its global leadership position in high quality products by relying on its sound, long-term strategy.”
Italian footwear and fashion group Salvatore Ferragamo reported a 9 per cent rise in sales for the year to €1.25bn.
- 1 The difference between a migrant and refugee, in one sentence
- 2 Miley Cyrus calls out hypocrisy of women’s nipples being taboo
- 3 Celebrity Big Brother 2015: Tila Tequila kicked off show after 'describing Hitler as a good man'
- 4 iPhone 5c to be discontinued, no iPhone 6c to replace it
- 5 Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
The difference between a migrant and refugee, in one sentence
Spain accused of 'provocation' after letting Russian submarine refuel off Gibraltar
Allonautilus scrobiculatus: World's 'rarest' creature spotted for only the third time ever
Miley Cyrus calls out hypocrisy of women’s nipples being taboo
Celebrity Big Brother 2015: Tila Tequila kicked off show after 'describing Hitler as a good man'
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Labour leadership: Jeremy Corbyn accused of 'deluding' young supporters with 'claptrap'
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
Iain Duncan Smith calls for urgent ESA overhaul as part of drive to cut down welfare costs
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...