Luxury brand LVMH has recorded sales growth of 19 per cent to €28.1 billion (£24.2 billion) in 2012 as the company continued to increase market growth despite the downturn.
Net profit climbed 12 per cent to €3.4 billion over the year while, in the fourth quarter, sales jumped 12 per cent with organic revenue growth of eight per cent.
Figures have been integrated with sales from designer label Bulgari, which the group acquired in June 2011, and this relationship has boosted sales of watches & jewellery over the period.
Sales of watches & jewellery saw a 46 per cent rise on the same period in 2011, while fashion & leather goods also saw an improved performance with total sales up 14 per cent on a year earlier.
Bernard Arnault, Chairman and CEO of LVMH, praised the strong performance though noted that the group’s wider strategy should be applauded.
“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,” Arnault said.
“In 2013, LVMH intends to further strengthen its global leadership position in high quality products by relying on its sound, long-term strategy.”
Internationally, LVMH saw strong growth in the US market and maintained rapid expansion in China, following the opening of its first Maison Louis Vuitton store in Shanghai last July.
With free cash flow of €2.5 billion for the year, LVMH is well-placed to grow further in the year ahead and Arnault believes that all business groups will maintain strong sales as the luxury sector thrives.
He commented: “2012 was another remarkable year for LVMH, especially in the context of the economic slowdown in Europe.
“All of our businesses demonstrated excellent momentum driven by innovation and the quality of their products, thereby strengthening their positions in traditional markets while continuing to develop in new ones.”