Excellent Performance for LVMH in 2012

  Excellent Performance for LVMH in 2012

Business Wire

PARIS -- January 31, 2013

LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group,
recorded revenue of €28.1 billion in 2012, an increase of 19% compared to
2011. This includes the integration of Bulgari as of June 30, 2011. Organic
revenue growth was 9%. All business groups saw excellent momentum in Europe,
Asia and the United States. Louis Vuitton, in particular, once again recorded
double-digit revenue growth during the year.

Revenue increased by 12% in the fourth quarter, compared to the same period in
2011, with organic revenue growth of 8%. The last quarter saw a modest
increase in growth compared to the third quarter of 2012.

Profit from recurring operations increased by 13% to €5 921 million, a
performance which is even more remarkable when compared to the strong growth
in 2011. Current operating margin was 21% in 2012. Group share of net profit
was €3 424 million, an increase of 12% compared to 2011.

Bernard Arnault, Chairman and CEO of LVMH, said: "2012 was another remarkable
year for LVMH, especially in the context of the economic slowdown in Europe.
All of our businesses demonstrated excellent momentum driven by innovation and
the quality of their products, thereby strengthening their positions in
traditional markets while continuing to develop in new ones. Looking beyond
the appeal of our brands, it is the talent of our teams and their motivation
that enables us to so effectively execute our strategy. In 2013, LVMH intends
to further strengthen its global leadership position in high quality products
by relying on its sound, long-term strategy."

Highlights of 2012 include:

  *Profit from recurring operations close to 6 billion Euros
  *Further market share gains throughout the world
  *Strong momentum in the United States
  *Continued rapid growth in Asia
  *Strong progression in Wines & Spirits
  *Double-digit revenue growth and exceptional profitability at Louis Vuitton
  *Improved performance of other Fashion & Leather Goods brands
  *Remarkable year for Parfums Christian Dior which gained market share in a
    competitive environment
  *On-going strengthening of the market positions of DFS and Sephora due to
    their innovative products and services
  *Excellent results for TAG Heuer and the integration of the first full year
    of Bulgari
  *Free cash flow of €2.5 billion

Euro millions                      2011     2012     % Change
Revenue                            23 659   28 103   + 19 %
Profit from recurring operations   5 263    5 921    + 13 %
Group share of net profit          3 065    3 424    + 12 %
Free cash flow*                    2 177    2 474    + 14 %

* Before available for sale financial assets and investments, transactions
relating to equity and financing activities

Revenue by business group:

                                                     % change
Euro millions                                              2012/2011
                                  2011     2012     Reported  Organic*
Wines & Spirits                    3 524    4 137    + 17 %    + 11 %
Fashion & Leather Goods            8 712    9 926    + 14 %    + 7 %
Perfumes & Cosmetics               3 195    3 613    + 13 %    + 8 %
Watches & Jewelry                  1 949    2 836    + 46 %    + 6 %
Selective Retailing                6 436    7 879    + 22 %    + 14 %
Other activities and               (157)    (288)    -         -
Total LVMH                         23 659   28 103   + 19 %    + 9 %

*With comparable structure and exchange rates

Profit from recurring operations by business group:

Euro millions                       2011    2012    % change
Wines & Spirits                     1 101   1 260   + 14 %
Fashion & Leather Goods             3 075   3 264   + 6 %
Perfumes & Cosmetics                348     408     + 17 %
Watches & Jewelry                   265     334     + 26 %
Selective Retailing                 716     854     + 19 %
Other activities and eliminations   (242)   (199)   -
Total LVMH                          5 263   5 921   + 13 %

Wines & Spirits: strong growth in vintages and prestige qualities

The Wines & Spirits business group recorded organic revenue growth of 11%.
Profit from recurring operations increased by 14%. Continuing the favorable
trend for the wines and spirits market in 2011, demand remained strong in
2012. In addition to volume growth, improved product mix and a policy of
adjusted price contributed to this excellent performance. Champagne recorded a
strong performance in its rosé and prestige vintages. Sparkling and still
wines from Estates & Wines experienced strong new growth. Hennessy cognac saw
a very good year for all its qualities and in all regions. Belvedere vodka
enjoyed good momentum outside the U.S. while the single malt whiskeys
Glenmorangie and Ardbeg recorded rapid increases in their key markets. All
maisons in this business group thus benefit fully from their value enhancing
strategy, based on the image of their brands and the strength of their
distribution network.

Fashion & Leather Goods: excellent performance from Louis Vuitton and other

The Fashion & Leather Goods business group recorded organic revenue growth of
7% in 2012. Profit from recurring operations increased by 6%. Louis Vuitton,
which had another record year, increased its lead over other artisanal brands
of leather goods. With double-digit revenue growth, Louis Vuitton maintained
its historic strategy based on the extraordinary quality of its products and
its excellent distribution. The Maison continues to record an exceptional
level of profitability in a context of sustained investment dedicated to
strengthening its savoir-faire. The opening of its first dedicated jewelry
boutique complete with its first Haute Joaillerie workshop at Place Vendôme in
Paris and the reopening of the Maison Louis Vuitton in Shanghai are among the
highlights of the year. Fendi continued the qualitative expansion of its
distribution network. Its iconic handbag Baguette experienced a record year on
its 15^th anniversary. As the brand continues to strengthen its identity,
Céline showed excellent performance in all its products and in all geographic
areas. The performance of the other fashion brands continued to improve.

Perfumes & Cosmetics: excellent momentum

The Perfumes & Cosmetics business group recorded organic revenue growth of 8%.
Profit from recurring operations increased by 17%. Parfums Christian Dior saw
excellent performance driven by the strength of flagship lines, notably Miss
Dior and J’adore. Dior Addict Lipstick confirmed its leadership position in
its main markets and the skin care line Prestige continued its sustained
growth. Guerlain continued to see strong growth momentum attributed notably to
the performance of its new fragrance La Petite Robe Noire. Parfums Givenchy
saw strong growth in its makeup line due to broader distribution and the
success of its mascara Noir Couture.  Benefit, Make Up For Ever and Fresh
continued their strong growth.

Watches & Jewelry: strong progress in iconic lines and development of
industrial capacity

The Watches & Jewelry business group recorded organic revenue growth of 6% in
2012. Profit from recurring operations rose 26% notably due the performance of
Bulgari, consolidated as of 30 June 2011. LVMH watch brands experienced good
momentum supported by many innovations and the excellent performance of their
iconic models Carrera by TAG Heuer, King Power by Hublot and El Primero by
Zenith. In Jewelry, Bulgari confirmed the success of its Serpenti and B.Zerol
collections, enriched by new creations, and reinforced the quality of its
distribution. Chaumet and Fred continue to develop their star collections.

Selective Retailing: rapid growth thanks to its innovative product and service

The Selective Retailing business group recorded organic revenue growth of 14%
in 2012. Profit from recurring operations increased by 19%. Due to its strong
commitment to the quality of its stores, DFS benefitted from momentum among
Asian customers. Three major concessions were won in 2012 at Hong Kong Airport
and the concession at Los Angeles Airport was renewed. The opening in Hong
Kong of a third Galleria is also a key highlight of the year.

Sephora continued to achieve an excellent level of performance and made market
share gains across all its regions. Online revenue is growing strongly. In
Europe, new stores opened for the first time in Denmark and Sweden. In the
United States, the renovation of several flagship stores in New York
strengthened the appeal of the brand. Sephora continued its expansion in China
while accelerating the renovation of its existing network. Its first stores
were opened in the high potential markets of Brazil and India.

Favorable outlook for LVMH in 2013

Despite an uncertain economic environment in Europe, LVMH is well-equipped to
continue its growth momentum across all business groups in 2013. The Group
will maintain a strategy focused on developing its brands by continuing to
build up its savoir-faire, as well as through strong innovation and expansion
in fast growing markets.

Driven by the agility of its organization, the balance of its different
businesses and geographic diversity, LVMH enters 2013 with confidence and has,
once again, set an objective of increasing its global leadership position in
luxury goods.

Dividend increase of 12%

At the Annual Shareholders Meeting on April 18, 2013, LVMH will propose a
dividend of €2.90 per share, an increase of 12%. An interim dividend of €1.10
per share was paid on December 4 of last year. The balance of €1.80 per share
will be paid on April 25, 2013.

The LVMH Board met on January 31 to approve the financial statements for 2012.
Audit procedures have been carried out and the audit report is being issued.
Regulated information related to this press release, the presentation of
annual results and the report “Financial Documents” are available at

Revenue by business group and by quarter
            Wines &   Fashion   Perfumes    Watches   Selective   and
                      &         &           &
(Euro      Spirits  Leather  Cosmetics  Jewelry  Retailing  Eliminations  Total
millions)             Goods
First       926       2 374     899         630       1 823       (70)           6 582
Second      833       2 282     828         713       1 767       (39)           6 384
Third       1 006     2 523     898         690       1 862       (79)           6 900
Fourth      1 372     2 747     988         803       2 427       (100)          8 237
Total      4 137    9 926    3 613      2 836    7 879      (288)         28
revenue                                                                          103

            Wines &   Fashion   Perfumes    Watches   Selective   and
                      &         &           &
(Euro      Spirits  Leather  Cosmetics  Jewelry  Retailing  Eliminations  Total
millions)             Goods
First       762       2 029     803         261       1 421       (29)           5 247
Second      673       1 942     715         315       1 410       (10)           5 045
Third       871       2 218     793         636       1 547       (54)           6 011
Fourth      1 218     2 523     884         737       2 058       (64)           7 356
Total      3 524    8 712    3 195      1 949    6 436      (157)         23
revenue                                                                          659

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."


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+ 44.773.965 5492
Michele Calcaterra/Mateo Steinbach
Kekst & Company
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