$LVMH Moet Hennessy Louis Vuitton (LVMHF.US)$ On January 26,...
$LVMH Moet Hennessy Louis Vuitton(LVMHF.US$ On January 26, LVMH, the world's largest luxury group, announced its fourth quarter and full-year financial data for the year to the end of December 2022. Year-on-year sales grew 23% year-on-year to €71.8 billion, hitting a new all-time high. Operating profit also grew 23% to €210.55 billion, net profit grew 17% to €141 billion, operating Free cash flow exceeds EUR 100 billion.
The growth in results was mainly driven by recompense spending by consumers in Europe, the US and Japan since the beginning of the year, with the European market performing the best, as the dollar strengthened and US tourists flocked to Europe and Japan. Revenues in the European, US and Japanese markets rose sharply, growing by 35%, 15% and 31%, respectively. Asian markets excluding Japan improved 8% compared to the previous quarter and recorded an increase of 6%. Although the situation in China improved compared to the second quarter, store traffic did not return to normal.
By business line, sales revenue for all LVMH Group businesses increased significantly in fiscal 2022 and increased global market share.
1. The fashion and leather goods business performed well, growing 25% to €386.48 billion: Louis Vuitton, Dior, Celine, Fendi's revenue and profits all reached record levels. Of which Louis Vuitton's revenues exceeded €200 billion for the first time, contributing a quarter of the group's revenues, and the Dior brand's sales have nearly doubled to €90 billion in almost two years, exceeding Hermes' €89.82 billion revenue in 2021.
2. SELECT RETAIL BUSINESS REVENUE GREW 26% TO €148.52 BILLION: AS GLOBAL TOURISM RETAILING REVIVED, SEPHLAN'S REVENUE AND REVENUE HIT AN ALL-TIME HIGH, WITH STRONG PERFORMANCE GROWTH MOMENTUM IN NORTH AMERICA, EUROPE, THE MIDDLE EAST AND MOST SOUTHEAST ASIAN COUNTRIES. At the same time, the Group is further investing in Sephora's omni-channel strategy to continuously improve the online and in-store shopping experience.
3. Perfume and cosmetics business revenue rose 17% to €77.22 billion and organic revenue grew 10%: Operating profits fell due to rising costs caused by global inflation. Where Dior fragrances, makeup and skincare remain a major growth driver, Dior's Sauvage perfumes remain the leader, and Fenty Beauty has doubled revenue thanks to the expansion of its distribution network and the launch of new products.
4th. Watch and jewellery business revenue grew 18% to €105.81 billion: Tiffany's premium jewellery revenue doubled, and Bulgari continued strong growth momentum, particularly in Europe, Japan and the US. Tiffany's brand appeal is growing, and its fiscal 2022 results set a record, and premium jewelry revenue doubled. In order to better consolidate the positioning of high-end jewelry brands, Tiffany again raised global product prices in November last year, with an increase range of 20% to 59% in the Chinese market. In terms of brand marketing, the brand is also leaning towards creating new classics, trying to replicate the word-of-mouth effect generated by the movie Tiffany's Breakfast.
While China's business took a hit last year, Asia remains LVMH's largest market, accounting for 37% of total sales, followed by the United States at 27%, Europe and France at 24%, and the rest of the world at 12%. As of the end of the reporting period, LVMH had 5,664 stores worldwide, a net increase of 108 from the previous year.
LVMH CEO Bernard Arnault said in a financial statement that while the big environment of the past year was full of uncertainty, the position of the flagship brand in various areas has been consolidated or even improved, and in the future there will be increased investment in products and distribution networks, along with a more diversified layout, further strengthening global luxury Leading position in the luxury market.
The growth in results was mainly driven by recompense spending by consumers in Europe, the US and Japan since the beginning of the year, with the European market performing the best, as the dollar strengthened and US tourists flocked to Europe and Japan. Revenues in the European, US and Japanese markets rose sharply, growing by 35%, 15% and 31%, respectively. Asian markets excluding Japan improved 8% compared to the previous quarter and recorded an increase of 6%. Although the situation in China improved compared to the second quarter, store traffic did not return to normal.
By business line, sales revenue for all LVMH Group businesses increased significantly in fiscal 2022 and increased global market share.
1. The fashion and leather goods business performed well, growing 25% to €386.48 billion: Louis Vuitton, Dior, Celine, Fendi's revenue and profits all reached record levels. Of which Louis Vuitton's revenues exceeded €200 billion for the first time, contributing a quarter of the group's revenues, and the Dior brand's sales have nearly doubled to €90 billion in almost two years, exceeding Hermes' €89.82 billion revenue in 2021.
2. SELECT RETAIL BUSINESS REVENUE GREW 26% TO €148.52 BILLION: AS GLOBAL TOURISM RETAILING REVIVED, SEPHLAN'S REVENUE AND REVENUE HIT AN ALL-TIME HIGH, WITH STRONG PERFORMANCE GROWTH MOMENTUM IN NORTH AMERICA, EUROPE, THE MIDDLE EAST AND MOST SOUTHEAST ASIAN COUNTRIES. At the same time, the Group is further investing in Sephora's omni-channel strategy to continuously improve the online and in-store shopping experience.
3. Perfume and cosmetics business revenue rose 17% to €77.22 billion and organic revenue grew 10%: Operating profits fell due to rising costs caused by global inflation. Where Dior fragrances, makeup and skincare remain a major growth driver, Dior's Sauvage perfumes remain the leader, and Fenty Beauty has doubled revenue thanks to the expansion of its distribution network and the launch of new products.
4th. Watch and jewellery business revenue grew 18% to €105.81 billion: Tiffany's premium jewellery revenue doubled, and Bulgari continued strong growth momentum, particularly in Europe, Japan and the US. Tiffany's brand appeal is growing, and its fiscal 2022 results set a record, and premium jewelry revenue doubled. In order to better consolidate the positioning of high-end jewelry brands, Tiffany again raised global product prices in November last year, with an increase range of 20% to 59% in the Chinese market. In terms of brand marketing, the brand is also leaning towards creating new classics, trying to replicate the word-of-mouth effect generated by the movie Tiffany's Breakfast.
While China's business took a hit last year, Asia remains LVMH's largest market, accounting for 37% of total sales, followed by the United States at 27%, Europe and France at 24%, and the rest of the world at 12%. As of the end of the reporting period, LVMH had 5,664 stores worldwide, a net increase of 108 from the previous year.
LVMH CEO Bernard Arnault said in a financial statement that while the big environment of the past year was full of uncertainty, the position of the flagship brand in various areas has been consolidated or even improved, and in the future there will be increased investment in products and distribution networks, along with a more diversified layout, further strengthening global luxury Leading position in the luxury market.
In addition, the Group reported an annual investment of nearly EUR 50 billion in operations, mainly for expanding its store network, upgrading production facilities and recruiting human resources. This year, the Group generated more than EUR 100 billion in free cash flow.
Supply chain layouts have also been put on the agenda by LVMH, as demand for luxury goods among affluent consumers around the world remains high. Following Fendi and Dior, Louis Vuitton will build a new factory in the town of Sieci in Tuscany, Italy, producing handbags and other leather accessories for its core brand Louis Vuitton, at which time the factory will be LVMH's largest workshop in Italy.
$Louis Vuitton MH (LVMHF.US) $$Louis Vuitton MH Unsponsored ADR (LVMUY.US) $$ Prada (01913.HK) $$ Hermes (ADR) (HESAY.US) $
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