LVMH record results 2006

LVMH Moët Hennessy Louis Vuitton reported a 30 percent surge in 2006 profits to €1.88 billion. Revenues jumped 10 percent to €15.31 billion. “ The excellent performance in 2006 illustrates the vitality of our major brands which continue to strengthen and gain market share,� chairman Bernard Arnault said in a statement. “The year also confirmed the strong potential of our high growth rising star brands and the Group's leading position in emerging markets.�

Arnault cannot be tempted to make any acquisitions. As far as he is concerned, the group's portfolio is “optimized�. “It's certainly not a favourable environment to make acquisitions,� he said during the presentation of the 2006 results. The group achieved strong organic growth of 12 percent, with all business groups and regions contributing to the gains. Profit from recurring operations increased by 16 percent.

The company reported a “robust� economic environment, but acknowledged that Japan was suffering the consequences of a weakened yen. Arnault said that the group was “looking at a flat performance from Louis Vuitton in Japan�. However, he seemed unperturbed by the setback. “We are expecting a year of sustained growth – significant growth in all likelihood.�

The watches and jewellery division performed particularly well, with operating profit leaping a stunning 281 percent to €80 million. The division saw the most growth in the US with 33 percent, followed by Europe with 28 percent. Operating profit at the group's other businesses all realized double-digit growth. The fashion and leather goods division achieved its biggest growth in Asia with 19 percent, followed swiftly by Europe with 18 percent. Japan recorded a very modest growth of 1 percent.

The Fendi brand demonstrated enormous growth, while Marc Jacobs and Donna Karan also showed strong results. Meanwhile, the Louis Vuitton brand is performing well in new markets and there will be more store openings in the Ukraine and Russia. Among the group's most profitable brands were Louis Vuitton, Parfums Christian Dior, Moët & Chandon, Hennessy and Tag Heuer.