Chinese comeback leads to record results for LVMH
Luxury giant LVMH, parent company to 70 brands like Louis Vuitton, Givenchy, and Dom Perignon champagne, has posted fourth quarter earnings for 2017 that demonstrates the extent of the luxury recovery. The company posted record breaking revenues and operating income for the year, and increased online sales. As a result, LVMH’s share price rose, and the Group’s owner, chairman and CEO, Bernard Arnault, has risen up the billionaire’s ladder – he is now worth more than Facebook founder Mark Zuckerberg.
LVMH’s share price has risen by 32% over the last 12 months
SOURCE: Yahoo Finance
Mr. Arnault was eager to speak to the press about the results, and made the following statement:
“The excellent performance, to which all our businesses contributed, is due in part to the buoyant environment but above all to the remarkable creative strength of our brands and their ability to constantly reinvent themselves. In an environment that remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2018, our leadership in the universe of high quality products.”
Arnault added that: “China has had a good comeback,” and, describing the global backdrop for luxury, said: “These global business trends are continuing into this year.”
LVMH saw sales grow by 11% against the same period in the previous year. That beat expectations of 9%. Total revenue was up by 13% (to €42 billion) against the year-ago quarter, and net profits rose by 29% (to €5.13 billion) over the same period. The record breaking results reiterated the power of the Louis Vuitton brand, which remains the company’s main earnings driver, contributing more than half of the group’s profits.
Dominion holds LVMH in its Global Trends Luxury Fund.
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