Luxury products group LVMH recorded its highest revenue to date in 2016 – €37.6bn, up 5% on 2015. Meanwhile, profit from recurring operations reached €7bn, up 6%.
In the group’s Perfumes & Cosmetics division, organic revenue growth was 8%, with profit from recurring operations up 5%.
The company said that the opening of the new atelier for fragrance creation Les Fontaines Parfumées located in Grasse, France, was a “highlight” of the year.
We can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2017, our leadership in the universe of high quality products.
Parfums Christian Dior put in a stand-out performance with market share growing in all regions. The success of Sauvage was said to drive this growth, as well as the ongoing popularity of its J’Adore and Miss Dior scents.
Make-up was another growth-driver for LVMH last year. Guerlain’s new make-up collection inspired by its La Petite Robe Noire fragrance boosted the brand’s performance, while Benefit experienced strong growth driven by its new 13-sku eyebrow collection.
Other strong performers were Make Up For Ever, Fresh and Kat Von D.
In selective retailing, Sephora was the shining star. The retail chain continued to gain market share across all regions, with double-digit revenue and profit growth.
More then 100 new stores were opened in 2016 with a flagship in the World Trade Center in New York, US. It also launched online in six new countries.
Bernard Arnault, Chairman and CEO of LVMH, said: “LVMH achieved an excellent performance in 2016 within a context of geopolitical and economic instability.
"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 which remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2017, our leadership in the universe of high quality products.”
