LVMH joins the list of luxury record breakers
Analysts may continue to warn of a credit crunch and a consumer slowdown, but the forecasts just don’t seem to tally with the facts at present. While economic reports are forecasting doom and gloom, the world’s major luxury brands continue to post record results and positive outlooks for 2008.
France’s LVMH (Moët Hennessy Louis Vuitton) is the latest luxury group to join the ever-expanding list of companies, such as PPR, Aeffe, Richemont, and Coach, to report double-digit growth in 2007.
The French company, whose brands include Louis Vuitton, Fendi and Loewe, posted record results for 2007, despite the negative impact of a strong euro and a weak dollar, improving profit from recurring operations by 12% to reach €3.55 billion, while revenues rose 13% to €16.5 billion. The group’s Fashion & Leather Goods division also reported “strong momentum” at Louis Vuitton and “growing success” at Fendi, with revenues rising 14%, while profit from recurring operations increased 12% to €1.829 billion.
It also remains positive about the current year and believes that it will maintain its momentum and continue to grow despite the current uncertainties. “LVMH has shown record revenue in 2007 and has once again improved profitability. In an economic environment unsettled since the beginning of the year, we will rely on the strength of our growth model, the exceptional innovation of our brands and the talent of our teams to make 2008 another year of growth,” said Bernard Arnault, chairman and chief executive.
