LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of €42.6 billion in 2017, an increase of 13 percent over the previous year. Organic revenue growth was 12 percent. All business groups recorded double-digit organic growth with the exception of Wines and Spirits, whose growth in the second half was limited by supply constraints. With organic revenue growth of 11 percent, the trend seen since the beginning of the year continued into the fourth quarter.
Profit from recurring operations reached €8 293 million in 2017, an increase of 18%. Operating margin reached 19.5%. Group share of net profit was €5 129 million, representing growth of 29%.
Bernard Arnault, Chairman and CEO of LVMH, said: “LVMH achieved another record year. The excellent performance, to which all our businesses contributed, is due in part to the buoyant environment but above all to the remarkable creative strength of our brands and their ability to constantly reinvent themselves."
He further states, "Continued innovation, entrepreneurial spirit and the quest for excellence: all Maisons continue to assert these core values while maintaining rigorous execution of their strategies on the ground. In an environment that remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2018, our leadership in the universe of high quality products.”
Of the group's Fashion and Leather Goods division, the year-end results reported organic revenue growth of 13 percent for 2017 as a whole. Louis Vuitton continued to demonstrate "outstanding creativity across all of its businesses, maintaining a good balance between innovations and the strengthening of its iconic product lines." The conglomerate cites "new products arising from the collaborations with the artist Jeff Koons as well as the Supreme brand, the launch of the brand’s first smart watch and the inauguration of the Maison Louis Vuitton Vendôme in Paris" as among the key events of the year.
It highlighted Christian Dior, "whose business became fully consolidated within the Group in the second half," as having "achieved an excellent performance." LVMG also stated, "Fendi continued to grow strongly. Loro Piana, Céline, Loewe, Kenzo and Berluti made good progress. Marc Jacobs strengthened its product offering and continued its restructuring. Rimowa completed its first year within the LVMH Group."
As for its Perfumes and Cosmetics division, LVMH says it achieved "successful innovations and rapid growth in Asia," in particular during 2017 with total recorded organic revenue growth of 14 percent.
Parfums Christian Dior "grew market share in all regions," while Dior's makeup segment "grew strongly." Parfums Givenchy had a very good year, thanks in particular to its makeup, just as Benefit which reinforced its Brow Collection. And finally, the group name-checked its latest foray into beauty: Fenty Beauty by Rihanna, which launched worldwide exclusively at Sephora, and "is enjoying exceptional success."