INTERNATIONAL. DFS Group “progressed strongly” in 2018, according to majority owner LVMH Moët Hennessy Louis Vuitton, which today declared record results.
DFS is co-owned by LVMH and Co-Founder Robert Miller.
While as always not revealing DFS’s specific performance (they are contained withing the company’s Selective Retailing Division, alongside fellow travel retailer Starboard Cruise Services, Sephora and Le Bon Marché Rive Gauche department store), LVMH noted that progress had been driven by a “particularly good performance in Hong Kong and Macao.”
The recently opened Gallerias in Siem Reap, Cambodia and Venice, Italy also grew rapidly, the company noted. The closure of the loss-making Hong Kong International Airport concessions at the end of 2017 contributed to a rebound in profitability, LVMH said.
The Selective Retailing business group achieved organic revenue growth of 6%, up 12% excluding the Hong Kong International Airport concession closures. Profit from recurring operations was up 29%.
Elsewhere in the division, beauty chain Sephora had another year of growth and market share gains. Online sales grew rapidly, especially in North America and Asia. The extension and renovation of its distribution network continued in 2018 with around 100 new stores opening around the world, including the new Nanjing Road store in Shanghai and the first Sephora-branded stores in Russia. Le Bon Marché accelerated the development of its loyalty programme and launched a new children’s department in the last quarter. The online platform, 24 Sèvres, launched a year ago, developed actively.
Record results for LVMH in 2018
LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of €46.8 billion in 2018, an increase of 10% over the previous year. Organic revenue growth was 11%, and 12% excluding the impact of the closure of the Hong Kong concessions at the end of 2017. All business groups recorded excellent performances, LVMH said.
Organic revenue growth in the fourth quarter was 10%* (excluding the impact of the closure of the Hong Kong concessions). The quarter continued the trend that has been underway since the beginning of the year.
Profit from recurring operations amounted to €10 billion in 2018, up 21%. Operating margin reached a level of 21.4%, an increase of 1.9 percentage points. Group share of net profit amounted to €6.4 billion, up 18%.
LVMH Chairman and CEO Bernard Arnault commented: “LVMH had another record year, both in terms of revenue and results. In particular, profit from recurring operations crossed the €10 billion mark.
“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 2019 LVMH will continue its strong dynamic of innovation, targeted investments, combining tradition and modernity, long-term vision and responsiveness, entrepreneurial spirit and a sense of responsibility. In an environment that remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2019, our leadership in the universe of high quality products.”
More details to follow.
