Once again, LVMH has turned in a remarkable set for results for 2012 considering the group’s size and the balanced growth achieved across all of its divisions and across all continents. The margin contraction ( 110bps at 21.1%) is related to high costs (marketing/restructuring) in the Leather Goods division and to re-injecting new life into Bulgari! The slowdown in growth occurred in Q4 but the Chinese New Year will help the early 2013 situation! Management is confident, as it can rely on a number of strength factors (unique brand portfolio, presence in good markets: China and USA) to deliver further record profits.
For H1 2012, LVMH has once again delivered a remarkable set of results considering the group’s size and the balanced growth achieved across all of its divisions and across all continents. The churlish might well point to the squeeze on the margin (-110 bps) related to high marketing costs at Vuitton and dilution, for the time being, stemming from Bulgari’s consolidation in Watches & Jewelry: neither effect will recur in H2! Management is confident about H2 as it can rely on several strengths (unique brand portfolio, presence in good markets: China and the USA) to deliver record profits again. PLUS rating reiterated.
The financial year 2011 closed with another historic record for sales, operating result and net profit. A better than expected Q4 brought the year to a splendid close with excellent business performance and even greater profitability. For once, Bernard Arnault appears to be genuinely confident and described 2012 prospects as “excellent”. The group’s assets (unique brand portfolio, presence on good markets: China and the USA) will come fully into their own in 2012. PLUS code confirmed.
2011 will set another all-time record after 2010. +15% organic growth in the first 9 months, boosted by all group’s divisions, highlights the quality of the business model and shows that growth drivers remain intact. Dynamic performance in the USA and Asia, Vuitton’s highly profitable growth, together with vigorous growth relays in the Spirits and Watches & Jewellery (Bulgari) segments, are reassuring in a more challenging European environment for 2012 !
The financial year 2011 will see another historic record. Q3 performance confirms this with sales totalling €6.01 billion (+15% in organic terms) ahead of expectations (€5.86 billion, +12%). Organic sales growth has not slowed from quarter to quarter despite a high comparison base (Q3 2010: +14%). LVMH is looking forward confidently to the end of the financial year with no sign of any demand downturn. Upwards revisions of forecasts are expected for this share which benefits from an excellent profitable growth dynamic with valuation ratios among the lowest in the Luxury sector. PLUS code confirmed.
2010 was an excellent year and 2011 looks like reaching historic highs. Already H1 results exceeded expectations with sales of €10.3bn, within which organic growth accelerated in Q2 (+15%), and in particular an EBIT of €2.2bn (+22% vs. consensus at +15%). The performance was remarkable in all divisions (double-digit growth in sales and EBIT). The guidance is optimistic for H2 with no trend reversal in sight. The visibility is excellent for a stock which benefits from an excellent dynamic of profitable growth and one of the lowest valuation within the pure Luxury segment. Code PLUS reiterated.
2011 is off to a great start with 14% organic growth in Q1, for all the business groups and geographical areas (excluding Japan), reflecting the quality of the business model and growth drivers which remain intact: recovery in the USA, dynamic performance in Asia, ongoing and highly profitable growth at Vuitton, strong relays in the Wines & Spirits and Watches & Jewellery activities. The stake in Hermès (21.2%) and acquisition of Bulgari are bonuses!
2010 was an excellent year with a record level of activity, a margin close to its historic peak and an unprecedented net profit (+73% at €3.07 billion). These results are in line with expectations except for the net profit which is well above (Hermès effect!). Activity remains strong in all the divisions and profitability is greatly improved. The confidence with which Bernard Arnault is approaching 2011 is unusual enough to be worth a special mention. PLUS code confirmed.
2010 will be an excellent vintage for LVMH whose performance is remarkable thanks to the dynamic Asian markets and the upturn in the USA. Over and above Vuitton’s continuous and highly profitable growth, the dynamic relays of Wines & Spirits, Watches & Jewellery and Selective Distribution look particularly promising for the future as does the entry into the Hermès share capital!
LVMH has announced its acquisition of 17.1% of the Hermès share capital. The details of this operation have not been disclosed, but it must have been spread over a lengthy period in view of the average share price of €80.5 (against €176.2 on Friday evening). LVMH says it has no intention of launching a takeover bid but is adopting a long-term position with an approach that is both offensive and defensive on one of the most profitable and emblematic brands in the sector. Even if the group’s real intentions are not known, since LVMH has the resources needed to acquire 100% of Hermès with or without the disposal of Moët Hennessy, the short-term transaction is certainly well worthwhile at the price paid. PLUS code confirmed.
LVMH’s business dynamic remained exceptional in Q3. Organic growth proved better than expected (+14% against +11%) and is not weakening despite a higher base effect. Every division has reported 2 figure growth. Excellent performance of the Fashion & Leather Goods division (+14%) and faster growth in Wines & Spirits, Watches & Jewellery and Selective Distribution. Unsurprisingly, LVMH is optimistic for the year as a whole. An upward review of forecasts and higher shareholder return are on the cards! The valuation is still attractive and does not reflect the quality of the company’s fundamentals.
The quality of the results for H1 2010 is remarkable from all points of view: +14% organic growth accompanied by two-figure performance of all the divisions, an operational result which leapt ahead (+33% to €1.82 billion), a booming net profit (+53% to €1.05 billion) and excellent cash flow generation at €1.1 billion. LVMH is confident for H2, while still not making any numerical forecasts: revisions are to be expected as is a higher shareholder return! LVMH is best placed to handle the big themes of the sector (emerging markets, US recovery, currencies) and has an attractive valuation. Plus code confirmed.
LVMH has emerged stronger than ever from the crisis. What is more, reported results for 2009 and Q1 2010 reflect a faster and more vigorous performance recovery than expected thanks to the dynamic Asian markets and the upturn in the USA. Over and above Vuitton’s continuous growth, the dynamic relays of Wines & Spirits, Watches & Jewellery and Selective Distribution look particularly promising for 2010 and beyond.
Sales figures announced by LVMH for Q1 2010 show explosive organic growth (+13% to €4.5 billion), exceeding even the most optimistic forecasts (consensus +7% to €4.2 billion)! Boosted by excellent performance in Asia and a significant recovery in the USA and Europe, the group reports 2 figure growth of the activity of all its divisions. The group’s prudent stance on the outlook for 2010 almost seems exaggerated in view of the US recovery, improved tourist flows and growth of emerging countries. Prospects for profitable growth look very promising. Plus code confirmed.
Performance in 2009 was strong with a return to organic growth of business activity in Q4 (+1%) as well as a better than expected operating result (€3.35 billion). Profitability of the Fashion & Leather goods business was high and all the divisions reported margins above consensus. The free cash flow upturn (+66%) is remarkable (simultaneous reduction of Capex and working capital requirement). Even Bernard Arnault is showing some confidence in the 2010 prospects (recovery in the USA, improved tourist flows, growth of emerging countries). Profitable growth levers are particularly promising. PLUS code confirmed.
LVMH is emerg ing stronger from the current crisis. What is more, Q3 results validate various positive signs in the sector from which it will benefit fully in Q4 (favourable base effect). Over and above Vuitton’s continuous growth, the dynamic relays of Wines & Spirits, Selective Distribution, Watches & Jewellery are well placed to take advantage of the economic recovery in 2010.
Business improved in Q3 (-3% organic versus -7% in H1) thanks to: 1/ a smaller reduction of volumes for Wines and Spirits (-11% after -22% in H1); 2/ greater resilience of Louis Vuitton (+7% versus +5% in H1), 3/ less stock reductions and an improved trend for some business activities, 4/ strong growth in Asia (+13% after +4% in H1) led by China. This Q3 performance and the prospect of a more favourable Q4 reinforce our view that the group is well placed to benefit from economic recovery in 2010.
Because of leaks, LVMH had to publish its results for the first half-year of 2009 two days before the official date. Besides showing that activity is standing up well to the world economic slowdown, they offer a better than expected profitability in operational terms. The profitable growth dynamic at Vuitton is proving consistent and there are signs of improvement in the Wines&Spirits and Perfumes&Cosmetics sectors. Showing resilience to the crisis, LVMH is positioned for the economic rebound. PLUS code reiterated.
Hermès has just published a Q2 turnover above expectations, marked by an acceleration of activity and a significant upturn in the Leather Goods/Saddlery division. The read across is positive for LVMH. In addition, the simultaneous publication of very weak watch sales in June and the first half-year supports our scenario: no recovery in the short term in “hard luxury” whereas “soft luxury” offers much better resistance, and even possibly growth. We are reiterating our preference for LVMH in the sector.
Q1 2009 illustrated the defensive qualities of LVMHs main brands, in particular the Fashion & Leather Goods business (Vuitton) which continues to grow steadily and accounts for 53% of the operating result. LVMH is well placed to withstand the current economic slowdown thanks to the diversification of its activities and geographical exposure; growth prospects are looking good.
Q1 2009 sales totalled €4 billion (+0.4% in published terms, -7% organic) slightly below expectations (€4.1 billion). A significant and higher than expected decline has been confirmed in the Wines & Spirits division (-22%) and in Watches & Jewellery (-41%). Figures for the Fashion & Leather goods business activity (35% of sales, 53% of the group EBIT) came as a nice surprise with better than expected organic growth (+4% against +2%) and Vuitton at +5/6%. Results growth target for 2009 confirmed. PLUS code confirmed.
Results for 2008 are good. +7% organic growth year on year, holding up better than expected in Q4 (stable against -3%). The operating result is strong thanks to good performance by the key divisions (Fashion & Leather Goods, Wines & Spirits). As usual, the group has not announced any targets for 2009 (poor visibility). LVMH remains our favourite share in the sector because of the defensive qualities of its main labels, highlighted again in this Vuitton publication (50% of ROP). PLUS code confirmed.
LVMH has announced 9 months sales figures totalling €11.96 billion (+4.5% published and +10% organic) in line with expectations. The organic growth downturn in Q3 (+6%) had been anticipated for the following reasons: 1/ very high comparison base (Q3 2007: +15%); 2/ uncertain international economic conditions. The most profitable divisions (Fashion & Leather goods, Moët-Hennessy) are in excellent health and their business is not slowing. The “substantial growth” target for 2008 results has been confirmed. That is reassuring. PLUS code confirmed.
LVMH's first half results are very good (organic growth, operational performance and margin improvement). All the business activities recorded double figure growth with one pleasant surprise: Wines & Spirits recovered in Q2. The luxury sector leader’s ability to report accelerating profit growth in a difficult market environment (currencies, world economy) is reassuring, even more so since LVMH has confirmed its significant growth target for 2008 results; it expects a strong dynamic to be maintained in the second half. PLUS code confirmed.
We believe that LVMH is the best placed luxury group to withstand an economic downturn because of the diversification of its geographical exposure and business activities. In addition to its attractive valuation, close to the levels of the last crises (2001 and 2003), the strong performance reported in Q1 is continuing in Q2; this points to substantial growth of sales and results in 2008.
LVMH has published higher than expected Q1 sales (+5% at €4 billion, +12% organic). All the divisions have reported double digit growth, including Louis Vuitton in Europe, USA and Asia. The combination of new store openings, product launches and aggressive marketing has once again paid dividends. Only the Spirits division (+1%) was hit, as expected, by a high comparison base (+15% Q1 2007) and the US slowdown. The management is maintaining its significant result growth target for 2008. PLUS code confirmed.
LVMH has published good quality results (organic growth and improved margins), they are better than expected for the year and for Q4. All the divisions reported strong performance in 2007 and announced reassuring figures for Q4, especially the most profitable Fashion & Leather Goods (Vuitton), and Wines & Spirits. In a difficult environment (currency, slowdown in the US not affecting LVMH), the management is giving a reassuring message; it expects a significant improvement of its results in 2008. PLUS code repeated.
LVMH has published excellent sales figures. Sales for Q107 came in at €3804 m up 7% (13% organic growth). All the divisions have reported twofigure growth but the big surprise comes from Wines&Spirits. The group remains confident for 2007 and has announced its expectation of significant result growth. We are confident in the management’s ability to achieve the set targets and confirm our PLUS code.
LVMH has published excellent annual results. Sales for 2006 stood at €15,306 million up 12% and the net result totalled €2,160 million, showing a 30% increase. Growth gathered pace in Q4 with the rebound of the Wines & Spirits business activity. All the geographical areas, except for Japan, reported twofigure growth. The group remains confident for 2007 and has announced that it is expecting “significant” growth of its results. We are convinced that the management has the necessary capacities to reach its set objectives. We therefore confirm our PLUS code.
The last quarters have highlighted the group’s positive results trend. Sales growth remains strong and innovation is proving sustained in all the group’s business activities. The management has confirmed its guidelines for 2006. We remain confident in the ability of LVMH to maintain its rate of growth in the coming quarters, thanks to the strength of its brands, the launch of new products and the entry in to new markets. PLUS code confirmed.
The results published for the 1st half feature an ROP up by 18.8% but still slightly below expectations, in particular in the Wines & Spirits branch. This performance can be explained by exchange rate variations and an unfavourable country mix (strong development in China). However, in his speech, the CEO remained confident in the 2nd half which will see less difficult conditions; the target for 2006 has been maintained (significantly higher results). In view of these favourable prospects and the attractive valuation, we confirm our PLUS code.
LVMH has published halfyearly sales in line with market expectations (but at the top of the range). The company has confirmed its target of “very significantly” higher 2006 results. The dynamic therefore remains unchanged for the company which continues to offer a very attractive growth profile. Upward profit reviews are possible.
LVMH has published very good sales figures for Q1 06 at €3,555 million, up 15% and 12% in terms of organic growth. All of the divisions reported high organic twofigure growth except for the “Selective Distribution” business activity. The USA and Asia continue to develop at a sustained pace. This publication, above market expectations, comes as very good news. PLUS code maintained.
LVMH has published good results with 16% growth of its recurring operating result (ROR) which came in at EUR 2,743 million (consensus: EUR 2,716 million) on sales worth EUR 14 billion. The net result is 21% higher at EUR 1,440 million (against the expected EUR 1,460). The group has set itself the target of “highly significant results growth in 2006”. The management also indicated its intention of continuing to focus on internal growth and is giving priority to net cash generation. PLUS code maintained.
We had an opportunity to meet the management of LVMH: the CFO, JeanJacques Guiony and the Head of Investor Relations, Christopher Hollis. During this meeting we discussed a number of interesting topics. We remain confident in LVMH. PLUS code confirmed.
LVMH has published better than expected sales figures for Q3 2005. Internal growth turned out to be as strong as in Q1 and Q2, but the product mix is not ideal and foreign currency fluctuations have not yet had any positive impact. This publication confirms the strong growth of the group’s brands, especially as the business trend since early October has been good. The inauguration of the Maison Louis Vuitton on the Champs Elysées and the opening of flagship stores in Peking and Hong Kong in November should confirm this trend over the entire quarter. PLUS.
Results published by LVMH are in line with market expectations on the whole. The operating margin is up by 20 basis points, despite an unfavourable exchange rate effect. In view of the dynamic activity during the summer and a more favourable exchange rate environment, the management has reviewed its margin objectives upwards. We maintain our positive opinion on this share.
Sales published by LVMH exceeded market expectations. Organic growth (excluding FX) stood at 12% (consensus: 10%). The two most soughtafter divisions (Wines & Spirits, Fashion & Leather Goods) performed very well. Growth is likely to continue in the 2nd half. PLUS code maintained but investors who are satisfied with the absolute performance (21.4% since the start of the year or 18.5% since the recommendation – 18.03.04) may decide to take their profits.
Yesterday evening, after the stock market had closed, LVMH published better than expected sales figures. All the divisions did better than the consensus, apart from Fashion and Leather Goods which was slightly disappointing (because of Donna Karan) despite twofigure sales growth at Louis Vuitton. The good surprise came from Europe and the recovery in Japan. We confirm our PLUS code on the share which is an excellent opportunity for a diversified investment in the luxury segment.
LVMH has published good results despite disappointing operating margins at two of its most important divisions (Wines & Spirits, Fashion & Leather Goods). However, the company has got off to an excellent start in 2005: twofigure sales growth in January and February (+12% in LFL). We believe that following strong performance by companies active in the watchmaking sector (Richemont, Bulgari), interest in the leather goods industry should also recover (with a switch) (LVMH, Hermès). PLUS code maintained.
Last night, after the financial markets had closed, LVMH announced sales in line with market expectations. The 4th quarter brought a slight slowdown (+10% against 12% for the first 9 months), explained by weak growth of the “Fragrances & Cosmetics” business activity (+2% Q4). All the other divisions reported strong performance. In general, the figures published today augur well for the full annual results. We confirm our PLUS code. LVMH is an excellent opportunity for a diversified investment in the luxury sector.
LVMH has published sales at the bottom end of the range of forecasts. All the divisions, excluding Fragrances & Cosmetics, reported sales with twofigure organic growth. The prospects for 2005 remain as unclear as those announced for 2004 (tangible growth…). The complete results will be published on 10 March 2005. PLUS code maintained.
LVMH has made a friendly offer worth a total of 335 million to acquire Glenmorangie. LVMH has gained the approval of Brown Forman and several family shareholders representing 83.2% of the voting rights in Glenmorangie. Even if the impact on the EPS at LVMH is minimal, we regard the price as too high. PLUS code maintained.
LVMH published sales for the first 9 months of 2004 slightly below market expectations. Sales increased by 13% (organic) to EUR 8.75 billion (consensus: EUR 8.82 billion). Despite a more difficult basis of comparison than in the first half of 2004, growth remains encouraging. PLUS maintained.
2004 first half results published by LVMH are better than the market had expected, but the operating margins of two divisions: Wines & Spirits and Fashion & Leather Goods have proved disappointing. This is attributable to exchange rate movements which were unfavourable to the group. However, at the operational level, LVMH is proving successful and has an effective strategy (greater internal innovation, less external growth). PLUS code confirmed.
LVMH has published its sales figures for the 1st half of 2004. They are above market expectations but the announcement that operating profit growth stood at just 12% (consensus: 15%) came as an unpleasant surprise. We believe that LVMH has every likelihood of putting matters right in the 2nd half with the launch of new products in several divisions and also thanks to the fact that the majority of the operating profit made by the Selective Distribution division will be reported during this period. PLUS code maintained.
LVMH held its annual general meeting. B. Arnault, the group CEO, confirmed the 2004 forecasts and gave some information about second quarter trends. LVMH’s prospects continue to be the best in the luxury sector and significant potential exists for improvement of the margins in several divisions (selective distribution, watch and jewellery). PLUS code maintained.
LVMH is a very attractive company presenting a low risk because of its diversified profile, its critical size and innovation policy. Strategic innovation makes LVMH unique and enables value to be created through several brands targeted on different customer segments. Introduction with a PLUS code.