LVMH has beaten analyst expectations amid its full-year results, as the luxury retail group’s major senior reshuffle starts to bear fruit.
For the year ending December 31, revenues at LVMH – which owns luxury high street brands Louis Vuitton, Christian Dior, Fendi, Sephora and Thomas Pink – reported record revenues of €42.6 billion (£37.30 billion).
This represents a 12 per cent growth in organic sales not taking acquisition costs into account, while edging ahead of analysts’ predictions of €42.3billion (£37 billion).
Profits also jumped 18 per cent to €8.29 billion (£7.26 billion), driven by strong performance in its fashion and leather goods arm.
Sales across the division soared 27 per cent with its flagship brands Louis Vuitton and Christian Dior, which is recently fully acquired, leading the way.
“Louis Vuitton will continue reinforcing its production capacity and enhancing the quality of its retail network, with the constant aim of offering its customers exceptional shopping venues and unique experiences, both in its physical stores and in the digital realm,” the company said in a statement.
“All of the companies in the fashion and leather goods business group will remain focused on the creativity of their collections, building on their iconic lines through innovation while achieving excellence in their retail networks, strengthening their online presence and digital communications.”
Chief executive and chairman Bernard Arnault said the success was due to a “buoyant environment” and the “remarkable creative strength of our brands”.
This month Christian Dior’s chief executive Sidney Toledano replaced Pierre-Yves Roussel as head of LVMH’s fashion arm, amid a major senior reshuffle announced in October.
Toledano will be succeeded by Fendi’s Pietro Beccari, with Arnault stating the appointment marked a “new era” for Dior.