Luxury lifestyle group LVMH has seen positive Paris trading (with profits jumping by 64% last year) after fresh demand for its flagship brand, Louis Vutton. The group also said that U.S. consumers helped drive revenue in 2014, counteracting the overall softening of global demand for premium goods.
After years of consistent growth, key players in the luxury sector have faced some difficulties as consumer habits change and competition increases but in a Paris based presentation yesterday, Executive Officer Bernard Arnault said he’s “relatively confident” for 2015. He is expecting economic trends that succeeded at the end of last year, including falling commodity prices and currency volatility, to continue.
“What really is the source of our confidence is the word desire,” Arnault said,“we will continue to offer creative products, but products whose quality is exceptional.”
The luxury-goods tastemaker said revenue increased 6% to €30.6bn (£23.16 bn) last year, despite weak demand for cognac in China, which affected wine and spirit sales. Across its fashion and leather-goods category, which is governed by Louis Vuitton, sales rose 10% to €10.8bn (£8.17bn) although this is largely due to the integration of Loro Piana, the lux Italian brand acquired at the end of 2013. Deducting the Loro Piana sales and exchange rate effects, sales in the division rose just 3%. Overall, business is improving, the group has said.
Arnault added that the plan is in place to reposition its Marc Jacobs brand with, with the view that it will float through an IPO.