LVMH 2005 jewelry and watch revenue up 16 percent
By JCK Online Staff -- JCK Online, 1/20/2006 8:20:00 AM
LVMH Moët Hennessy Louis Vuitton reported record revenue of $17 billion in 2005, an 11 percent increase over 2004. In the fourth quarter, revenue increased by 13 percent to reach $5.2 million. All geographic regions where the group operates increased their revenue, with an acceleration of growth in the U.S., Asia, and Europe.
LVMH's Watches & Jewelry division reported a 16 percent revenue increase for the year—the second largest increase of all its divisions. Total revenue for the year was $693,000. LVMH’s brands gained significant market share in all strategic regions, most notably in the U.S., Asia, and Japan. The iconic lines, such as Link, Carrera and Aquaracer by TAG Heuer, the Open concept by Zenith, and the Liens and Class One lines by Chaumet, have been strengthened. Dior watches has continued to increase revenue with the launch of the Christal line.
Its other divisions reported the following results for 2005:
Wine & Spirits, $3.2 billion total revenue, 17 percent reported growth
Fashion & Leather Goods, $5.8 billion, 10 percent reported growth
Perfumes & Cosmetics, $2.76 billion, 7 percent reported growth
Selective retailing, $4.4 billion, 11 percent reported growth
December was also a record month for the world’s leading luxury products group with an exceptionally strong showing of Louis Vuitton and Wines & Spirits.
LVMH, which publishes its full earnings on March 2, said it expects double-digit operating profit growth, excluding divestment and acquisitions. LVMH also said it is targeting "tangible" profit growth for 2006.
