LVMH Group Sales Increased 4% In 2013

The world's largest Luxury goods Group LVMH recently released its annual performance bulletin in 2013: Sales of 29 billion 100 million euros, up 4% from 2012, organic growth (at constant exchange rate and comparable company structure) to 8%; sales in the fourth quarter of 2013 increased by 2.4%, better than that of 1.7% in the third quarter; the profit from continuing business reached 6 billion 21 million euro, compared with 2012, which was particularly strong in 2012, still 2% growth - 21%; group net profit 3 billion 436 million euro, basically flat with 2012; Asian and US momentum was good, Europe maintained growth trend; free cash flow was proportional to growth of 3 billion 436 million, reaching Euro EUR; as at the end of December 2013, asset liability ratio was lower than that of 2012.

According to the Department,

The wine and spirits sector performed well, with an organic growth of 6% in 2013, but in the fourth quarter, it was worse than the third quarter. Annual operating profit increased by 9%. Asia and the US have strong market momentum and Europe is not booming. The strategy of focusing on high-end products, strict pricing policy and keeping the initiative of innovation has achieved success. The performance of champagne, sparkling wine and red wine is stable and solid. Hennessy Cognac is mainly driven by the US market (compared with Remy Martin's performance last year, which relies heavily on the Chinese market).

Latest fashion Leather goods The organic growth in 2013 was 5%, and the fourth quarter was better than the third quarter. But operating profit fell 4% year-on-year. The profitability of Louis Vuitton is still excellent. The super high quality leather goods Capucines and W bag launched last year were a great success. The women's clothing department ushered in a new artistic director, Nicolas Ghesquire; Fendi continued to focus on high-end products and selectively expand sales channels; the report did not mention that Cline did a good job and sales hit a new high.

The performance of the cosmetics department is better than that of the market, and organic growth has reached 7% in the whole year. The fourth quarter is better than the third quarter. Annual operating profit increased by 2%. Among them, Make Up For Ever and Fresh are strong in Asia.

　　 Wrist Watch The jewelry sector grew by 4% throughout the year, better in the fourth quarter than in the third quarter. The year-on-year operating profit increased by 12% over the same period - the direct business performed well, and the choice of multi brand retailers was more prudent. Bvlgari's snake series has been successful.

The specialized retail sector grew by 17% in the whole year, but in the fourth quarter it was worse than the third quarter. Operating profit increased 6% year-on-year. DFS duty-free shops performed well in Macao, Hongkong, but the devaluation of Japanese yen has affected the purchasing power of Japanese tourists and damaged the performance of Hawaii stores. The market share of the beauty chain Sephora in various regions has been continuously improved, and online sales have been growing well.

　　 2013 quarterly performance comparison:

　　 Specific sales and operating profits of various departments: