LVMH: 22% Increase in Revenue for the First Nine Months of 2012 Business Wire PARIS -- October 15, 2012 LVMH Moët Hennessy Louis Vuitton, the world’s leading high quality products group, recorded revenue of €19.9 billion for the first nine months of 2012, an increase of 22% on the comparable period in 2011. After taking into account the integration of Bulgari, as of 30 June 2011, and a positive currency impact, organic revenue grew by 10%. The Group recorded a 15% rise in revenue for the third quarter. Organic revenue growth was 6%, a good performance in the current economic environment, particularly when compared to the strong performance in the same period of 2011. The US market continued to demonstrate solid momentum. In spite of a mixed business environment, Europe and Asia also contributed to the third quarter performance. Louis Vuitton continues to gain market share throughout the world. Revenue by business group: Euro millions 9 months 9 months Change 2012 / 2011 2012 2011 first 9 months Reported Organic* Wines & Spirits 2 765 2 306 + 20% + 12% Fashion & Leather Goods 7 179 6 189 + 16% + 8% Perfumes & Cosmetics 2 625 2 311 + 14% + 8% Watches & Jewelry 2 033 1 212 + 68% + 7% Selective Retailing 5 452 4 378 + 25% + 14% Other activities & eliminations (188) (93) ns ns Total 19 866 16 303 + 22% + 10% *with comparable structure and constant exchange rates. The Wines & Spirits business group recorded organic revenue growth of 12% for the first nine months of 2012. The Group’s champagne brands achieved a sustained increase in volume over the period. An improvement in product mix and the price increases implemented at the start of the year also contributed to the progress made by the Champagne business. All geographic regions recorded increases with particularly strong advances in emerging markets. The Wine business benefitted from the rapid development of sparkling wines. Hennessy cognac continued to see strong momentum across all categories. The Fashion & Leather Goods business group recorded organic revenue growth of 8% for the first nine months of the year. Louis Vuitton reported a double-digit rise in revenue, driven by the powerful appeal of its products and the unique experience offered to all clients at its stores, and further reinforcing its advance on the global market. The Shanghai opening of the first Maison Louis Vuitton in China and the launch of a number of collections in collaboration with the artist Yayoi Kusama marked some of the high points of the quarter. Céline achieved a remarkable performance across all its markets and product ranges. Fendi undertook a targeted expansion of its distribution network. All other fashion brands continued to show improved performance. The Perfumes & Cosmetics business group registered organic revenue growth of 8% for the first nine months of 2012. Christian Dior continued to show strong momentum underpinned by the growth of its iconic perfumes and the relaunch of Dior Addict, backed by a new publicity campaign. The makeup and skincare segments also contributed to the strong performance thanks to the Prestige range and the new Diorskin Nude products. Guerlain benefited from the successful launch of La Petite Robe Noire and solid progress with its Orchidée Impériale skincare products. Givenchy benefited from broadened distribution of its makeup range. Benefit continues to achieve strong growth thanks to its They’re Real mascara. Fresh opened its first store in the Chinese market. The Watches & Jewelry business group recorded organic revenue growth of 7% for the first nine months of 2012. LVMH’s watch brands made further progress driven by their iconic ranges and innovation. The roll-out of TAG Heuer’s new Link Lady and Zenith’s Pilot range were among the highlights for the quarter. In Jewelry, the success of Bulgari’s Serpenti and B.Zero1 collections was confirmed while the brand pursued a very selective distribution strategy. Chaumet and Fred delivered good performance in their own boutiques. The Selective Retailing business group achieved organic revenue growth of 14% for the first nine months of 2012. DFS continued to expand its presence in Hong Kong with the opening of its third Galleria in the city centre and establishing three new concessions at the airport which will be operational at the year-end. Sephora produced a remarkable performance, winning market share across all regions of the world. Its growth momentum remains strong with, notably, significant progress being made in China and Russia and the considerable success of its first store opening in Brazil. On-line sales in France and the United States saw particularly strong gains. Outlook Despite the background of an economic slowdown in Europe, LVMH remains confident in its outlook for 2012. The Group will continue to pursue its proactive strategy centered on innovation and targeted geographic expansion in the most promising markets. LVMH will rely on the power of its brands and the talent of its teams to further extend, in 2012, its global leadership position in luxury products. During the quarter and to date, no events or changes have occurred which could significantly modify the Group’s financial structure. Regulated information related to this press release and presentation available on our internet sitewww.lvmh.com APPENDIX LVMH – Revenue by business group and by quarter 9 months 2012 (Euro Wines & Fashion Perfumes Watches Selective Other millions) and & & Activities Spirits Leather Cosmetics Jewelry Retailing & Total Goods Eliminations First 926 2 374 899 630 1 823 (70) 6 582 Quarter Second 833 2 282 828 713 1 767 (39) 6 384 Quarter Third 1 006 2 523 898 690 1 862 (79) 6 900 Quarter Total 2 765 7 179 2 625 2 033 5 452 (188) 19 revenue 866 9 months 2011 (Euro Wines & Fashion Perfumes Watches Selective Other millions) and & & Activities Spirits Leather Cosmetics Jewelry Retailing & Total Goods Eliminations First 762 2 029 803 261 1 421 (29) 5 247 Quarter Second 673 1 942 715 315 1 410 (10) 5 045 Quarter Third 871 2 218 793 636 1 547 (54) 6 011 Quarter Total 2 306 6 189 2 311 1 212 4 378 (93) 16 revenue 303 About LVMH LVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits by a portfolio of brands that includes Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier, Château d’Yquem, Hennessy, Glenmorangie, Ardbeg, Vodka Belvedere, 10 Cane, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Green Point, Cape Mentelle, Newton, Wen Jun. Its Fashion and Leather Goods division includes Louis Vuitton, the world's leading luxury brand, as well as Céline, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Donna Karan, Marc Jacobs and Berluti. LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums Givenchy, Parfums Kenzo, Perfumes Loewe as well as other promising cosmetic companies (BeneFit Cosmetics, Make Up For Ever, Acqua di Parma and Fresh). LVMH is also active in selective retailing as well as in other activities through DFS, Sephora, Le Bon Marché, Samaritaine and Royal Van Lent. LVMH's Watches and Jewelry division comprises Bulgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred, Hublot and De Beers Jewellery, a joint venture created with the world’s leading diamond group. "Certain information included in this release is forward looking and is subject to important risks and uncertainties and factors beyond our control or ability to predict, that could cause actual results to differ materially from those anticipated, projected or implied. It only reflects our views as of the date of this presentation. No undue reliance should therefore be based on any such information, it being also agreed that we undertake no commitment to amend or update it after the date hereof.” Contact: Analysts and investors: LVMH Chris Hollis + 33 220.127.116.11.22 or Media: France : DGM Conseil Michel Calzaroni/Olivier Labesse/ Sonia Fellmann/Hugues Schmitt + 33 18.104.22.168.89 or UK: M: Communications Hugh Morrison + 44.207.920.2334 + 44.773.965 5492 or Italy: Michele Calcaterra/Mateo Steinbach Carlobruno&associati +39 02.89.05.51.01 or US: Kekst & Company James Fingeroth/Molly Morse/ Dawn Dover/Micheline Tang +1 212.521.4800
LVMH: 22% Increase in Revenue for the First Nine Months of 2012
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