LVMH Net Income Soars 40% to €1.01 Billion

Luxury group LVMH Moet Hennessy Louis Vuitton recorded annual sales of €12.6 billion ($16.88 billion), lifting net income 20 percent to €1.01 billion ($1.35 billion). The group’s Watches & Jewelry division returned to profitability thanks to brands such as TAG Heuer.

 

LVMH recorded 2004 operating income growth of 11 percent to €2.42 billion ($3.24 billion). At constant exchange rates, the annual growth in operating income would have been 24 percent.

The Watches & Jewelry business group saw steady growth and a return to profitability, with operating income rising to €13 million ($17.41 million) from a €48 million ($64.3 million) loss in 2003.

All watches and jewelry brands recorded better sales growth than their respective markets, particularly in the U.S. and Asia.

The group also reports continued organic growth of its leading brands, especially Louis Vuitton, Moet & Chandon, Hennessy, Veuve Clicquot, and Parfums Christian Dior.