- 2021-06-10
LVMH record-breaking performance
Despite the economic downturn in 2018, the stock market crash, the turmoil in the European Union and the "yellow vest" movement, the financial report of the French luxury goods giant Louis Vuitton still shows that the group's performance this year has only one word-stability.
LVMH Group (hereinafter referred to as Louis Vuitton) announced its 2018 financial report on Tuesday. The financial report shows that the group achieved a net profit of 6.35 billion euros in the past year, an increase of 18% from 2017. At the same time, sales An increase of 10%, reaching 46.82 billion euros, a record high.
The Asian region is still a major market for Louis Vuitton. The company’s chief financial officer Jean-Jacques Guiony said that although sales in the Chinese market have slightly shifted to other Asian markets, no obvious signs of slowing have been seen. On the contrary, the increase in spending by Chinese consumers on most of the group’s brands in the fourth quarter Both reached double digits.
Louis Vuitton stated in the financial report that the group is capable of maintaining the growth momentum of all businesses this year, and given the uncertainty of the future market, it will "enter 2019 with cautious confidence."
The financial report is eye-catching, and the shareholders' income is substantial
The group was formed by the merger of France's Louis Vuitton and Moet Hennessy. It owns many well-known brands including Louis Vuitton, Dior, Givenchy, Hennessy, and its business covers from clothing to cosmetics, and then to alcohol. Everything.
The financial report shows that the group has been growing steadily in terms of operating income, net profit or earnings per share in the past three years, and has set a record high in the 2018 fiscal year just past.
In terms of different markets, the Asian market contributed the most to revenue. Louis Vuitton’s sales in the Asian market accounted for 36% of the year’s sales. Except for Japan, the sales accounted for 29%, and it has been increasing year by year. , In contrast to the slight contraction in the US market.
Guiony attributed it to the decline in sales caused by the reduction in sales of the group's cosmetics retail brand Sephora in the US market. With the exception of the United States, in the fourth quarter of 2018, Louis Vuitton's sales growth in all markets around the world maintained the same rate as earlier in the year, or even better.
In terms of business segments, 40% of the group's total revenue comes from the fashion and leather products business, which has increased by 15% compared to 2017. Among the recurring profits, the watch and jewellery business grew the most, reaching 37%, and the wine and spirits business grew the least at 5%.
Louis Vuitton stated in the report that it is preparing to announce a 20% increase in dividends to 6 euros per share at the annual general meeting on April 18 this year. In December last year, the company issued an interim dividend of 2 euros per share to shareholders, and the balance of 4 euros will be paid at the end of April this year.
The global economy turns cold, but the impact is actually not significant
Although the growth rate of performance in 2018 has slowed down from 13% in 2017, in the current international economic and trade context, Louis Vuitton, a giant in the luxury goods industry, still produced a dazzling report card.
The slowdown in economic growth will undoubtedly take a huge impact on the luxury goods industry. The American jewelry brand Tiffany (Tiffany) once stated in the holiday performance report released on January 18 that the company's performance was declining and that the consumption of Chinese tourists was reduced.
In addition, mobile phone maker Apple, machinery and equipment maker Caterpillar, and chip maker Nvidia also explained the decline in performance as the slowdown in demand in the Chinese market.
In contrast to these companies, Louis Vuitton stated that it has not yet seen a significant slowdown in the Chinese market. According to the Financial Times, Guiony believes that the decline in sales in the Chinese market may be due to the weakening of the renminbi. At the same time, he pointed out that luxury consumers are often affected by sudden shocks and change their consumption tendencies. Not big.
The market thinks the cup is half empty, but in my opinion, the cup is half full.
Surprisingly, the French "yellow vest" movement did not have a significant impact on the company's sales in the European market. Guiony said that although the Louis Vuitton store was closed during the parade, many customers changed their shopping Time, still go to the store for consumption. Based on this, Louis Vuitton has certain confidence in the prospects. French billionaire Bernard Arnault, chairman and CEO of the group, said that this growth momentum will continue into 2019, and it is expected that its brands and businesses will continue to make progress, although "the environment at the beginning of the year is still unclear."