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LVMH posts record numbers

The luxury conglomerate has posted another record set of annual figures
January 31, 2019

Full-year results from luxury conglomerate LVMH (FR:MC.) revealed a 10 per cent improvement in annual revenues to €46.8bn (£40.8bn) which, combined with good operating margin growth, left the group share of net profit up 18 per cent at €6.4bn. This marked a record for the company, which reported continued growth across Europe, the US and – crucially – Asia and Japan. Wine and spirits, along with perfumes and cosmetics, performed particularly well in China and Asia, respectively, putting to bed any concerns about an over-reliance on Chinese consumer spending.

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As for the fashion and leather goods division, Louis Vuitton was the star performer, helping to log a 15 per cent rise in organic revenues and a 21 per cent surge in profits from operations. According to LVMH’s financial statements, Louis Vuitton is the only brand in the world that never holds a sale or sells its wares via discount outlets. The company also said it was an “excellent year” for brands including Bvlgari, Hublot and Tag Heuer.

Analysts at Berenberg expect net profits of €7.2bn for 2019, giving EPS of 1,433¢, compared with €6.4bn and 1,264¢ in 2018.