Revenue increases to record level of €35.7bn
Luxury products group LVMH has reported a 16% increase in revenue in 2015. Profits hit a record high of €37.5bn as the group saw strong growth in Europe, the US and Japan. The news comes despite a significant slowdown in the Chinese economy.
Bernard Arnault, Chairman and CEO of LVMH, said: “The 2015 results confirm the capacity for LVMH to progress and gain market share despite economic and geopolitical uncertainty. […]In an uncertain economic environment, we can rely on the desirability of our brands and the agility of our teams to further strengthen in 2016 our leadership in the world of high quality products.”
Arnault said that sales in France were almost back to their usual levels, following the terrorist attacks in Paris last year.
LVMH said that Sephora performed particularly well, making “exceptional progress”. The beauty retailer strengthened its position in all of its markets while also boosting online sales.
Overall, the company’s cosmetics and fragrance brands boosted profits significantly with revenue growth of 15%. Profit from recurring operations was also up 26%. Christian Dior was a particular success, with its new male fragrance Sauvage reporting “unprecedented success”. J’adore and Miss Dior were also highlighted as particularly strong products.
Guerlain’s skin care ranges and L’Homme Idéal also saw significant growth while Fresh and Make Up For Ever also performed “very well”. Benefit was also highlighted as a particular success. LVMH said this was due to “the originality of its products”.