Excellent performance of LVMH in 2013

  Excellent performance of LVMH in 2013

Business Wire

PARIS -- January 30, 2014

LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group,
recorded revenue of €29.1 billion in 2013, an increase of 4% over the previous
year. Organic revenue growth was 8%. The Group maintained good momentum in the
United States and Asia, and continued to grow in Europe, despite the
challenging economic environment.

With organic revenue growth of 8%, the fourth quarter performance was in line
with the trends seen in the first nine months of the year.

Profit from recurring operations rose to €6 021 million, an increase of 2%
over the strong growth recorded in 2012. Current operating margin reached 21%.
Group share of net profit was €3 436 million, in line with 2012 which included
a special dividend.

Bernard Arnault, Chairman and CEO of LVMH, said: "2013 saw another excellent
performance from LVMH despite exchange rate volatility and slower growth in
the European markets. Profit from recurring operations exceeded €6 billion for
the first time. A significant event during the year was the acquisition of
Loro Piana, a company famous for its unrivalled work with cashmere and rare
textiles, and with which we share the same values of family and craftsmanship.
All our brands have proven to be exceptionally dynamic. 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 2014, LVMH intends to
further strengthen its global leadership position in high quality products by
relying on its sound, long-term strategy.”

Highlights of 2013 include:

  *Profit from recurring operations exceeded 6 billion Euros for the first
  *Good momentum in Asia and the United States and continued growth in Europe
  *A remarkable performance in Wines & Spirits
  *The launch of very high quality leather products at Louis Vuitton whose
    profitability remains at an exceptional level
  *Further investment in our fashion brands
  *The strength and success of the iconic lines from Parfums Christian Dior
  *Excellent results from Bulgari
  *Continued progress at Sephora and DFS, driven by innovation in products
    and services
  *A 20% increase in free cash flow to 3 billion Euros
  *A gearing ratio of less than 20% at the end of December 2013

Euro millions                      2012     2013     % Change
Revenue                            28 103   29 149   + 4 %
Profit from recurring operations   5 921    6 021    + 2 %
Group share of net profit          3 424    3 436    + 0.4%
Free cash flow*                    2 474    2 958    + 20 %

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

Revenue by business group:

                                                   % change
Euro millions                                            2013/2012
                                2012     2013     Reported   Organic*
Wines & Spirits                  4 137    4 187    + 1 %      + 6 %
Fashion & Leather Goods          9 926    9 882    -0.4%      + 5 %
Perfumes & Cosmetics             3 613    3 717    + 3 %      + 7 %
Watches & Jewelry                2 836    2 784    - 2 %      + 4 %
Selective Retailing              7 879    8 938    + 13 %     + 17 %
Other activities and             (288)    (359)    -          -
Total LVMH                       28 103   29 149   + 4 %      + 8 %

*With comparable structure and exchange rates

Profit from recurring operations by business group:

Euro millions                       2012    2013    % change
Wines & Spirits                     1 260   1 370   + 9 %
Fashion & Leather Goods             3 264   3 140   -4 %
Perfumes & Cosmetics                408     414     + 2 %
Watches & Jewelry                   334     375     + 12 %
Selective Retailing                 854     901     + 6 %
Other activities and eliminations   (199)   (179)   -
Total LVMH                          5 921   6 021   + 2 %

Wines & Spirits: continuation of value creation strategy

The Wines & Spirits business group recorded organic revenue growth of 6% in
2013. Profit from recurring operations increased by 9%. In an environment
marked by good momentum in Asia and the United States, and a contrasted market
in Europe, the business group continued to reap the rewards of its value
creation strategy: a focus on the high-end range, a strict pricing policy and
a strong dynamic of innovation. Champagne saw sustained demand for its
prestige vintages. Sparkling and still wines from Estates & Wines recorded
solid performances. Hennessy cognac’s growth was driven by the American
market. Glenmorangie and Ardbeg whiskies recorded rapid increases in volumes.
Momentum across all brands was supported by Moët Hennessy’s powerful and
flexible distribution network and sustained investments.

Fashion & Leather Goods: strategic development at Louis Vuitton and sustained
investment in other brands

The Fashion & Leather Goods business group recorded organic revenue growth of
5% in 2013. Profit from recurring operations decreased by 4%. Over the year,
Louis Vuitton maintained its exceptional level of profitability while
continuing its quest for excellence with regard to its products as well as its
distribution. Among the year’s innovations, the Capucines model in leather and
the W bag, which revisits the iconic Monogram canvas, both achieved great
success. Creative momentum at Louis Vuitton was maintained with the arrival of
Nicolas Ghesquière as artistic director for its women’s collections, following
the move of Marc Jacobs to focus on his eponymous brand. Fendi continued to
focus on its high end products and the qualitative expansion of its
distribution network. Céline recorded a remarkable performance, reaching a new
record in its sales. Other fashion brands such as Kenzo, Berluti and Givenchy
continued to strengthen as they harness their creative flair.

Perfumes & Cosmetics: continued enhancement of iconic lines

The Perfumes & Cosmetics business group outperformed the market by recording
organic revenue growth of 7%. Profit from recurring operations increased by
2%. Parfums Christian Dior continued its momentum and gained market share. The
continued vitality of flagship lines like J’adore, which strengthened its
market leadership notably in France, and Dior Homme, the international success
of Rouge Dior and the development of the skin care Prestige, are remarkable.
Guerlain continued to grow, supported by its fragrance La Petite Robe Noire
and the rapid progress of Orchidée impériale. Benefit recorded a further year
of strong growth. Make Up For Ever and Fresh both achieved particularly strong
performances in Asia. The inauguration of the Hélios research centre at
Saint-Jean-de Braye and the reopening of Guerlain’s iconic boutique at 68,
Champs-Elysées, were some of the major highlights of the year.

Watches & Jewelry: focus on high-end and strengthened quality of distribution

The Watches & Jewelry business group recorded organic revenue growth of 4% in
2013. Profit from recurring operations rose 12%. An excellent performance in
the directly owned boutiques, where the network continues to expand around the
world, contributed to strengthening the image of the brands and the quality of
their distribution. The LVMH watch brands continued to invest in innovation
and development of industrial capacity, such as the new TAG Heuer movement
manufacturing facility. In Jewelry, the success of Bulgari’s Serpenti line was
confirmed and the new high-end jewelry Diva collection achieved excellent
results. Presence in multi-brand stores continues to be more selective.

Selective Retailing: innovation continues in both product and service offering

The Selective Retailing business group recorded organic revenue growth of 17%
in 2013. Profit from recurring operations increased by 6%.

DFS recorded further strong sales increases, notably reflecting the first full
year’s integration of three new concessions from the end of 2012 at Hong Kong
International airport – each having been the focus of significant investment
in upgrading works. The destinations of Hong Kong and Macau maintained strong
commercial momentum while the weakness of the Yen reduced the spending power
of Japanese travellers, notably in Hawaii.

Sephora continued to achieve an exceptional performance and gained market
share across all its regions. Online revenue is growing well. Innovation,
increased personalization of customer relations, and strengthening of service
offerings, both in store and online, are at the core of Sephora’s strategy.
Sephora’s exclusive offering has been notably enhanced by the new Marc Jacobs
cosmetics line. Sephora continues to expand and upgrade its distribution
network around the world and opened its first store in Thailand, a new

Confidence for 2014

Despite an uncertain economic environment in Europe, LVMH is well-equipped to
continue its growth momentum across all business groups in 2014. The Group
will maintain a strategy focused on developing its brands by continuing to
build on their 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 2014 with confidence and has,
once again, set an objective of increasing its global leadership position in
luxury goods.

Dividend increase of 7%

At the Annual Shareholders’ Meeting on April 10, 2014, LVMH will propose a
dividend of €3.10 per share, an increase of 7%. An interim dividend of €1.20
per share was paid on December 3 of last year. The balance of €1.90 per share
will be paid on April 17, 2014.

The LVMH Board met on January 30 to approve the financial statements for 2013.

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


                          Fashion     Perfumes      Watches                   Other
(Euro       Wines &   &         &           &         Selective   Activities     Total
millions)     Spirits     Leather     Cosmetics     Jewelry     Retailing     and
                          Goods                                               Eliminations
First       979       2 383     932         624       2 122       (93)           6 947
Second        829         2 328       872           686         2 093         (60)             6 748
Third         1 032       2 428       879           677         2 101         (97)             7 020
Fourth        1 347       2 743       1 034         797         2 622         (109)            8 434
Total       4 187     9 882     3 717       2 784     8 938       (359)          29
revenue                                                                                        149


                          Fashion     Perfumes      Watches                   Other
(Euro       Wines &   &         &           &         Selective   Activities     Total
millions)     Spirits     Leather     Cosmetics     Jewelry     Retailing     and
                          Goods                                               Eliminations
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


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, Château Cheval Blanc,
Hennessy, Glenmorangie, Ardbeg, Wen Jun, Belvedere, 10 Cane, Chandon, Cloudy
Bay, Terrazas de los Andes, Cheval des Andes, Cape Mentelle, Newton et
Numanthia. Its Fashion and Leather Goods division includes Louis Vuitton,
Céline, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Donna Karan,
Marc Jacobs, Berluti, Nicholas Kirkwood and Loro Piana. 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, la Samaritaine and Royal Van Lent. LVMH's
Watches and Jewelry division comprises Bulgari, TAG Heuer, Chaumet, Dior
Watches, Zenith, Fred, Hublot and De Beers Diamond Jewellers Ltd, 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.”


Analysts and investors:
Chris Hollis, + 33 1.4413.2122
DGM Conseil
Michel Calzaroni/Olivier Labesse/
Sonia Fellmann/Hugues Schmitt
+ 33 1.4070.1189
Hugh Morrison, + 44.773.965 5492
Carlo Bruno&Associati
Michele Calcaterra/Mateo Steinbach
+39 02.8905.5101
Kekst & Company
James Fingeroth/Molly Morse/
Anntal Silver
+1 212.521.4800
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