Friday, February 03, 2012

LVMH Sales +16% to $31B

Revenue rose 16 percent year on year to $31.2 billion (EUR 23.7 billion) for luxury group LVMH during 2011 and profit jumped 22 percent to $7 billion (EUR 5.3 billion). Specifically for the watches and jewelry segment, revenue nearly doubled to $2.6 billion (EUR 1.95 billion) in large part due to the integration of Bulgari. LVMH reported that organic revenue, which reflects comparable-store sales and exchange rates for the watches and jewelry segment rose 23 percent. 

LVMH watch and jewelry brands continued sustained growth across all geographies, according to the company. TAG Heuer made a splash with the launch of two exceptional products entirely developed and manufactured by its own workshop: the Mikrograph 100 and the Mikrotimer Flying 1000. Hublot continued its innovations with the launch of Masterpieces, the new watch collection of Grandes Complications, and extended its store network. Zenith benefited from the renewal of its emblematic lines which demonstrate the first class craftsmanship of its Manufacture. Bulgari's performance was strong and the collections, which were developed around the theme Serpenti, a symbol for the jewelry maison since the 1950s, were very well received. 

Bernard Arnault, the chairman of LVMH, said that 2011 results highlighted the power of the group's brands. ''Our businesses enjoyed excellent momentum and profit from recurring operations passed the threshold of 5 billion euro for the first time. The agreement with the Bulgari family was one of the key moments of the year. In 2012, LVMH intends to further strengthen its global leadership position in high quality products by relying on its sound, long-term strategy."

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