LVMH boasts “record year” as revenue tops £45bn

LVMH Bernard Arnault
LVMH reported "exceptional growth at Louis Vuitton and Christian Dior"
// LVMH revenue reached £45.4bn in 2019
// Profit for the group reached £9.7bn

LVMH has recorded a double-digit increase in revenue during the fourth-quarter, despite the Hong Kong protests dragging sales across stores in the region.

Revenue for the full year grew by 15 per cent to €53.7 billion (£45.4 billion), while fourth quarter revenue increased 12 per cent compared to the same period in 2018.

Profit for the parent company of luxury retailers like Louis Vuitton reached €11.5 billion (£9.7 billion) in 2019, up 15 per cent compared to 2018.

Operating margin reached a level of 21.4 per cent.

READ MORE: LVMH buys Tiffany for €14.7bn

The group reported “exceptional growth at Louis Vuitton and Christian Dior”.

“LVMH had another record year, both in terms of revenue and results,” chief executive Bernard Arnault said.

“The desirability of our brands, the creativity and quality of our products, the unique experience offered to our customers, and the talent and the commitment of our teams are the group’s strengths and have, once again, made the difference.

“In addition to the many successes of our Maisons, highlights of the year include the arrival of the exceptional hotel group Belmond, the partnership with Stella McCartney and the agreement with prestigious jewellery Maison, Tiffany & Co.

“LVMH is driven by a permanent commitment to perfection and quality, and by a long-term vision combined with a sense of responsibility in all our corporate actions, notably in its commitment for the preservation of the environment, sustainability and inclusion.

“In a buoyant environment that remains uncertain in 2020, we continue to be vigilant and focused on our objectives for progress.

“We can count on the strength of our brands and the agility of our teams to reinforce, once again in 2020, our leadership in the universe of high-quality products.”

To further expand its portfolio, LVMH acquired Tiffany for €14.7 billion (£12.60 billion) in November, making it the largest luxury brand takeover deal ever agreed.

LVMH said the move would “transform” its watches and jewellery division.

The acquisition raises the group’s jewellery profile, boosting its share of the luxury jewellery market against rival Richemont, and improving its presence in the US.

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