Luxury brand LVMH Group hits record profit, sales in 2010
Luxury brand maker LVMH Group expressed confidence for its 2011 forecast following a strong profit and revenue output in 2010.
The company – which owns luxury brands like Fendi, Louis Vuitton, and TAG Heuer – said that its full-year profit grew by 73 percent last year.
LVMH Group, the maker of the luxury brand Louis Vuitton, on Friday reported that its full-year profit grew by a third as demand for its leather bags and champagnes soar last year.
In a statement, LVMH chairman and chief executive Bernard Arnault said the company’s full-year profit increased by 73 percent in 2010 despite relatively weak market conditions for luxury goods.
“It was certainly a great year for LVMH, 2010 was a great vintage,” Arnault said.
Based on the company’s annual earning’s report, LVMH’s net profit rose by 73 percent to more than 3.03 billion euros or about $4.13 billion from 1.76 billion euros in the previous year.
Many analysts attributed the company’s profit surge to the relatively low-base figure in 2009, where many of the affluent and rich LVMH consumers limited their spending due to the global financial crisis.
Meanwhile, Arnualt said that the LVMH revenue increased by 19 percent to 20.32 billion euros in 2010 from 17.05 billion in 2009 – the figure matched analysts’ expectations for the company.
Fourth quarter revenue – which remained to be the most crucial period for LVMH – rose by about 20 percent to 6.11 billion euros as consumers go back to their usually spending habits.
LVMH, which also owns fashion brand Fendi and luxury watch maker TAG Heuer, said that sales in its fashion and leather goods division increased by 20 percent to 2.12 billion euros during the last quarter of 2010.