Record Results for LVMH in 2019

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LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of €53.7 billion in 2019, up 15%. Organic revenue growth was 10%. Europe and the United States experienced good growth over the year, as did Asia, despite a difficult environment in Hong Kong in the second half of 2019.

Revenue growth in the fourth quarter was 12% compared to the same period in 2018. Organic revenue growth was 8% for the quarter. Restated for the non-recurring effects of the VAT increase in Japan and the stock movements of distributors of cognac in the US, the Group’s organic growth was at a similar level in the third and fourth quarters.

Profit from recurring operations amounted to €11.5 billion in 2019, up 15%, compared to an already high level in 2018. Operating margin reached a level of 21.4%. Group share of net profit amounted to €7.2 billion, up 13%.

Bernard Arnault, Chairman and Chief Executive Officer of LVMH, said: “LVMH had another record year, both in terms of revenue and results. The desirability of our brands, the creativity and quality of our products, the unique experience offered to our customers, and the talent and the commitment of our teams are the Group’s strengths and have, once again, made the difference. In addition to the many successes of our Maisons, highlights of the year include the arrival of the exceptional hotel group Belmond, the partnership with Stella McCartney and the agreement with prestigious jewelry Maison, Tiffany & Co. LVMH is driven by a permanent commitment to perfection and quality, and by a long-term vision combined with a sense of responsibility in all our corporate actions, notably in its commitment for the preservation of the environment, sustainability and inclusion. In a buoyant environment that remains uncertain in 2020, we continue to be vigilant and focused on our objectives for progress. We can count on the strength of our brands and the agility of our teams to reinforce, once again in 2020, our leadership in the universe of high-quality products.”

Key highlights from 2019 include:

  • Further double-digit increases in revenue and profit from recurring operations, which reached record levels,
  • Continued growth in all geographic areas,
  • Good performance in Wines & Spirits, to which all regions contributed,
  • Exceptional growth at Louis Vuitton and Christian Dior,
  • Success of both iconic and new products at Louis Vuitton, whose profitability remains at an exceptional level,
  • Great strength of the flagship brands of Perfumes & Cosmetics,
  • Excellent year for Bvlgari and continued growth at Hublot,
  • Strong growth at Sephora,
  • Good resilience of DFS, faced, in the second half, with the situation in Hong Kong,
  • The agreement with the iconic American jewelry Maison, Tiffany & Co,
  • The integration of the Belmond hotel group,
  • Operating free cash flow of €6.2 billion, an increase of 13%,
  • Gearing of 16.2% at the end of December 2019.

Key figures

Euro millions  2018 2019 % change
Revenue 46 826 53 670 +15 %
Profit from recurring operations 10 003 11 504 +15 %
Group share of net profit 6 354 7 171 + 13 %
Operating free cash flow 5 452 6 167 + 13 %
Net financial debt 5 487** 6 206 + 13 %
Total equity 33 957 38 365 + 13 %

* Incorporating for the first time the impact of the application of IFRS 16 Leases.
** Excluding the acquisition of Belmond shares at the end of 2018 for € 274 million.

Revenue by business group:

Euro millions  2018 2019 % change
Reported Organic*
Wines & Spirits 5 143 5 576 +8 % + 6 %
Fashion & Leather Goods 18 455 22 237 + 20 % + 17 %
Perfumes & Cosmetics 6 092 6 835 + 12 % + 9 %
Watches & Jewelry 4 123 4 405 + 7 % + 3 %
Selective Retailing 13 646 14 791 + 8 % + 5 %
Other activities and eliminations (633) (174)

* At comparable structure and exchange rates. The currency effect was +3% and the structural impact, +1% (integration of Belmond since April 2019).

Profit from recurring operations by business group:

Euro millions 2018 2019 % change
Wines & Spirits 1 629 1 729 + 6 %
Fashion & Leather Goods 5 943 7 344 + 24 %
Perfumes & Cosmetics 676 683 + 1 %
Watches & Jewelry 703 736 + 5 %
Selective Retailing 1 382 1 395 + 1 %
Other activities and eliminations (330) (383)


Wines & Spirits: excellent global momentum

The Wines & Spirits business group achieved organic revenue growth of 6%. Profit from recurring operations increased by 6%. The business group continued to pursue its value strategy based on a strong innovation policy, while accentuating its environmental and societal commitment. The different regions contributed in a balanced way to its growth. Champagne was driven by the faster growth of prestige cuvées and by its price increase policy. Hennessy cognac, which recorded good growth, became the world’s leading premium spirits brand. The American market saw a normalization in stock levels at the distributors at the end of the year, while China continued its rapid progress linked notably to the timing of Chinese New Year. The acquisitions in 2019 of Château du Galoupet and Château d’Esclans mark LVMH’s entry into the promising market of high-quality rosé wines.

Fashion & Leather Goods: remarkable performances by Louis Vuitton and Christian Dior

The Fashion & Leather Goods business group achieved organic revenue growth of 17% in 2019. Profit from recurring operations was up 24%. Louis Vuitton continued to deliver an exceptional performance, to which all businesses and all clientele contributed. Iconic lines and new creations contributed in a balanced way to revenue growth. The “Louis Vuitton X” exhibition in Los Angeles successfully showed the Maison’s many artistic collaborations, and an unprecedented partnership in e-sport was signed with the League of Legends World Championship. The qualitative transformation of the distribution network continued notably with the inauguration of the Louis Vuitton Maison in Seoul, for which Frank Gehry designed a fantastic glass structure. Christian Dior has had a remarkable year. Proof of the Maison’s unique influence was its exhibition at the Victoria and Albert Museum in London which had record attendance of nearly 600,000 visitors. Very well received by customers, an exceptional boutique on the Champs Elysées in Paris took over from the historic address of 30 avenue Montaigne while it is being renovated. Fendi’s highlight for 2019 was its final tribute to Karl Lagerfeld, after a collaboration of 54 years. Celine gradually rolled out its boutique concept and launched its first high-end perfumery collection. Loewe delivered strong growth under the impetus of its designer JW Anderson. Loro Piana, Rimowa and Berluti experienced good progress.

Perfumes and Cosmetics: excellent growth of flagship brands and rapid progress in Asia

The Perfumes and Cosmetics business group achieved organic revenue growth of 9%, driven by the remarkable momentum of its major brands, notably Dior, Guerlain and Givenchy. Profit from recurring operations was up 1% after taking into account an exceptional depreciation of the product lines of certain young American brands. Skincare grew, underpinned notably by the demand in Asia. Christian Dior continued to grow much faster than the market. In addition to the strength of its iconic perfumes J’adore, Miss Dior and Sauvage, makeup and skincare contributed significantly to the excellent performance of the Maison. Guerlain’s growth accelerated and the brand enjoyed particularly good momentum with the success of Abeille Royale in skincare and Rouge G in makeup. Parfums Givenchy achieved another year of strong growth thanks to its makeup and its L’Interdit perfume. Fresh, Fenty Beauty by Rihanna and Acqua di Parma grew rapidly.

Watches and Jewelry: strong growth at Bvlgari and continued repositioning of TAG Heuer

The Watches and Jewelry business group recorded organic revenue growth of 3%. Profit from recurring operations were up 5%. The agreement with Tiffany & Co was a strategic highlight of the year. Bvlgari continued to perform very well and to strongly increase its market share. High jewelry and the iconic lines Serpenti, B.Zero 1 and Diva’s Dream were enriched with many new products and the Fiorever collection, launched at the end of 2018, combining flowers and diamonds, contributed significantly to growth. In watchmaking, the Serpenti Seduttori watch was exceptionally well received. Chaumet’s growth was driven by the success of its iconic collections. In early 2020, the Maison will inaugurate its completed renovated iconic site on Place Vendôme. As distribution evolves rapidly within the watchmaking sector, TAG Heuer continued to work with its partners to provide an increasingly selective and efficient distribution network, while pursuing its creative resurgence. Hublot recorded strong growth, driven by the Classic Fusion, Big Bang and Spirit of Big Bang lines. The first LVMH Watch exhibition at the Bvlgari Hotel in Dubai was a great success.

Selective Retailing: strong growth at Sephora and good resilience at DFS

The Selective Retailing business group achieved organic revenue growth of 5%. Profit from recurring operations was up 1%. Sephora is experiencing strong growth and continues to gain market share. Growth was particularly strong in Asia and the Middle East. Online sales grew rapidly throughout the world. Its distribution network continued to grow with more than one hundred new stores and the renovation of the flagship stores of Dubai Mall, Times Square in New York and La Défense in Paris. Le Bon Marché continued to cultivate exclusivity in its offer and in 2019 it opened its “private apartments” for a personalized shopping service. The 24S digital platform progressed well, with an increasingly international clientele. In the second half of 2019, DFS faced a slowdown in tourism in Hong Kong, which is an important market. In Europe, the Galleria in Venice continued to perform very well, and preparations are underway for the imminent opening of its new location at La Samaritaine in Paris.

Cautiously confident for 2020

In an uncertain geopolitical context, LVMH is well-equipped to continue its growth momentum across all business groups in 2020. The Group will pursue its strategy focused on developing its brands by continuing to build on strong innovation and investments as well as a constant quest for quality in their products and their distribution.

Driven by the agility of its teams, their entrepreneurial spirit, the balance between its different businesses and geographic diversity, LVMH enters 2020 with cautious confidence and once again, sets an objective of reinforcing its global leadership position in luxury goods.

Dividend up by 13%

At the Annual General Meeting on April 16, 2020, LVMH will propose a dividend of €6.80 per share, an increase of 13%. An interim dividend of €2.20 per share was paid on December 10 of last year. The balance of €4.60 will be paid on April 23, 2020.

The Board of Directors met on January 28th to approve the financial statements for 2019. Audit procedures have been carried out and the audit report is being issued.
The regulated information related to this press release, the presentation of annual results and the “Financial documents” report are available at


Condensed consolidated accounts are included in the PDF version of the press release.

LVMH – Revenue by business group and by quarter

2019 Revenue (Euro millions)

2019 Wines  & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other Activities and Eliminations Total
First Quarter 1 349 5 111 1 687 1 046 3 510 (165) 12 538
Second Quarter 1 137 5 314 1 549 1 089 3 588 (133) 12 544
Total First Half 2 486 10 425 3 236 2 135 7 098 (298) 25 082
Third Quarter 1 433 5 448 1 676 1 126 3 457 176* 13 316
Nine months 3 919 15 873 4 912 3 261 10 555 (122) 38 398
Fourth Quarter  1 657  6 364  1 923  1 144  4 236  (52)  15 272

* Includes all Belmond revenue for the period April to September 2019.

2019 Revenue (Organic growth versus same period of 2018)

2019 Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other Activities and Eliminations Total
First Quarter +9% +15% +9% +4% +8% +11%
Second Quarter +4% +20% +10% +4% +7% +12%
Total First Half +6% +18% +9% +4% +8% +12%
Third Quarter +8% +19% +7% +5% +4% +11%
Nine months +7% +18% +8% +4% +6% +11%
Fourth Quarter  +3%  +15%  +12%  +1%  +1%  +8%


2018 Revenue (Euro millions)

2018 Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities & eliminations Total
First Quarter 1 195 4 270 1 500 959 3 104 (174) 10 854
Second Quarter 1 076 4 324 1 377 1 019 3 221 (121) 10 896
Total First Half 2 271 8 594 2 877 1 978 6 325 (295) 21 750
Third Quarter 1 294 4 458 1 533 1 043 3 219 (168) 11 379
Nine months 3 565 13 052 4 410 3 021 9 544 (463) 33 129
Fourth Quarter 1 578 5 403 1 682 1 102 4 102 (170) 13 697


Impact of the application of IFRS 16 on the Group’s financial statements
as of December 31, 2019

Income statement
– Profit from recurring operations benefited from a positive contribution of 155 million,
– Net financial income/expense recorded a negative 290 million euro impact of interest on lease liabilities,
– There was a positive 40 million euro tax impact on profit and on minority interests, yielding a negative 95 million euro impact on the Group share of net profit.

Balance sheet
– The recognition of right-of-use assets increased non-current assets by 12.0 billion euros,
– The recognition of lease liabilities increased total liabilities by 12.0 billion euros, including 10.0 billion euros in non-current lease liabilities and 2.0 billion euros in current lease liabilities.

The liability for capitalized leases is excluded from the definition of net financial debt.

Cash flow statement
– There was a favorable 2 169 million euro impact on net cash flow from operating activities, including the positive 2 408 million euro impact of the depreciation of right-of-use assets (with no cash impact) and a negative 239 million euro impact of interest on lease liabilities,
– Net cash from/(used in) financing operations was negatively affected by the repayment of lease liabilities for 2 187 million euros.

Since the application of IFRS 16 had a significant impact of on the cash flow statement given the importance of fixed lease payments to the Group’s activities, specific indicators are used for internal performance monitoring requirements and financial communication purposes in order to present consistent performance indicators, independently of the fixed or variable nature of the lease payments. One such Alternative Performance Indicator is “Operating free cash flow”, which is calculated by deducting capitalized fixed lease payments in their entirety from cash flow. The reconciliation between “Net cash from operating activities” and “Operating free cash flow” as of December 31, 2019 and 2018:

(Euro millions) 2019 2018
Change in cash flow from operating activities 11 648 8 490
Operating investments (3 294) (3 038)
Repayments of rental debts (2 187)


See also Note 1.2 to the condensed consolidated financial statements for more detailed information on the first application of IFRS 16.