LVMH Moët Hennessy Louis Vuitton, the world's leading luxury products group, recorded a 19% increase in revenue in 2010, exceeding the 20 billion Euro mark for the first time, the luxury goods gaint said in a statement.
Annual net profit for the world's largest luxury goods company increased to €3.03 billion ($4.13 billion), from €1.76 billion in 2009, when the financial crisis spooked even affluent consumers. Revenue rose 19% to €20.32 billion, from €17.05 billion a year earlier, matching analysts' expectations.
Revenue increased by 20% in the fourth quarter with organic growth rising 13%. This performance is in line with the favorable trends observed since the beginning of the year, and compares to the fourth quarter of 2009 which also grew.
Profit from recurring operations increased by 29% to 4321 million Euros. The current operating margin improved by 1.6 percentage points to reach 21.3% in 2010 with all businesses contributing to this performance.
2010 was a great vintage for LVMH. The quality of our products, the originality of our brands and the talent of our teams bolstered by the economic recovery allowed us once again to gain market share throughout the world. In 2011, LVMH intends to further strengthen its global leadership position in high quality products by relying on its sound long term strategy, Chairman and CEO of LVMH, Bernard Arnault, said.
Excellent outlook for 2011
LVMH is well equipped to continue its growth momentum across all business groups in 2011. Its strategy will remain focused on developing its brands through strong innovation, quality and expansion in high potential markets. LVMH has set itself the objective of increasing, once again, its global leadership position in luxury goods.