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2004 FY sales - LVMH · January 19, 2005 15 Fashion & Leather Goods Reflecting growth potential •...
Transcript of 2004 FY sales - LVMH · January 19, 2005 15 Fashion & Leather Goods Reflecting growth potential •...
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LVMHQ4 and FY 2004 Sales
January 19, 2005
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2January 19, 2005
LVMH FY 2004 Sales Highlights
• Double-digit FY organic sales growth
• Positive contribution from all business groups on a constant perimeter basis
• For Q4 : 7% increase in organic sales on an increased comparable basis
• Record sales in December
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3January 19, 2005
LVMH FY 2004 Sales
2003 2004
11 962
Structure-1 %
Change-4 %
Organic+11 %
12 631
Q1 Q2 Q3 Q4
2 850 2 828
2004
3 0793 874
in millions of Euros
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4January 19, 2005
3 791
Structure-1 %
Change-4 %
Organic+7 %
3 874
Analysis of Sales Increase in Q4 2004in millions of Euros
Q4 2003 Q4 2004
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5January 19, 2005
Solid Growth in 2004
10% 10%7%
19%
Q1 2004 Q2 2004 Q3 2004 Q4 2004
6%
-4%
6% 8%
Q1 2003 Q2 2003 Q3 2003 Q4 2003
Organic sales growth %
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6January 19, 2005
France
Europe(exc. France)
US (inc. Hawaii)
Japan
Asia (exc. Japan)
Others6%
15%17%
21%
26%
15%
LVMHFY 2004 Sales by region in Euros
% of total sales
2004
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7January 19, 2005
LVMHFY 2004 Sales in the US in Dollars
Champagne & Wines +8%
Cognac & Spirits +30%*
Fashion & Leather Goods +22%
Perfumes & Cosmetics -26%*
Watches & Jewelry +11%
Selective Retailing +25%
Total LVMH Group +17%
2004
* Note respective structural effects: consolidation of Millennium/ sale of Bliss and US fragrance licenses
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8January 19, 2005
LVMHFY 2004 Sales in Japan in Yen
Champagne & Wines +17%
Cognac & Spirits -14%
Fashion & Leather Goods -2%
Perfumes & Cosmetics +5%
Watches & Jewelry +5%
Selective Retailing +26%
Total LVMH Group 0%
2004
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9January 19, 2005
LVMHFY 2004 Sales in Asia in Euros
Champagne & Wines +36%
Cognac & Spirits +9%
Fashion & Leather Goods +19%
Perfumes & Cosmetics +14%
Watches & Jewelry +20%
Selective Retailing +25%
Total LVMH Group +19%
2004
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10January 19, 2005
LVMHFY 2004 Sales in Europe in Euros
Champagne & Wines +7%
Cognac & Spirits +7%
Fashion & Leather Goods +5%
Perfumes & Cosmetics +1%
Watches & Jewelry -6%
Selective Retailing +5%
Total LVMH Group +3%
2004
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11January 19, 2005
Structure+ 1%
Change- 4%
Organic+ 11%
2 116
780
1 336
2 279
1 421
451
858
460559
Wines & SpiritsFY 2004 Sales
809
in millions of Euros
2003 20042004
Champagne & Wines
Cognac & Spirits 217 198 214 229
234 262345
580
Q1 Q2 Q3 Q4
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12January 19, 2005
Wines & SpiritsStrong growth of premium brands
Champagne & Wines• Champagne volumes up 6% in FY 2004 (excluding Canard Duchêne)• Steady pricing policy, improvement in product mix• Strong progress of Moët Hennessy Wine Estates
Cognac & Spirits• Hennessy volumes up 6% in FY 2004• Strong growth in VSOP and XO high-end qualities• Good performance in the US and Russia, rapid development of
the Asian market, in particular China and Taiwan• Majority stake in Millennium and double-digit sales increase
in Belvedere vodka • Acquisition of premium single malt whiskies : Glenmorangie, Glen Moray
and Ardbeg
Continued strengthening of the international distribution network
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13January 19, 2005
4 149
Structure+ 0%
Change- 5%
Organic+ 10%
4 367
Q1 Q2 Q3 Q4
1 065 9581 080
Fashion & Leather GoodsFY 2004 Sales
1 264
in millions of Euros
2003 20042004
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14January 19, 2005
Louis VuittonContinued exceptional performance
• Achieved double-digit sales growth at constant currency in FY2004 and increased market share
• Continued sales growth in the US and in Asia, notably in China
• Increased sales to Japanese clientele worldwide
• Created numerous innovations throughout the year • First jewelry collection Emprise• New Trianon and Trompe l’oeil leather lines• New blueberry color leather for Epi line• Launch of Lovely Pink watch for women
• Further store network expansion• 23 net openings in 2004 (4 in China), for a total of 340 stores at year-end• Major openings in Q4 : Hangzhou (China), Johannesburg (South Africa),
Kyoto (Japan)
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15January 19, 2005
Fashion & Leather GoodsReflecting growth potential
• Double-digit sales growth of Celine in FY 2004• Success of Boogie and Poulbot bags and
launch of Chouquette bag• Strong progress in Europe and Asia
• Donna Karan : continued selective US distribution
• Fendi : reduction in discounted sales in Europe and the US, good performance in Asia
• Double-digit sales growth in FY 2004 for Loewe, Marc Jacobs, Pucci and Berluti
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16January 19, 2005
2 181
Structure-3%
Change-2%
Organic+4%
2 154
Q1 Q2 Q3 Q4
473 500 523
Perfumes & CosmeticsFY 2004 Sales
658
in millions of Euros
2003 20042004
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17January 19, 2005
Perfumes & CosmeticsStrategic distribution reorganization
• Organic growth of 4% in 2004 despite reorganization of US distribution
• Good performance by Parfums Christian Dior, with the success of its new women’s perfume Pure Poison and good momentum of its make-up lines
• Progress of Guerlain with the launch of L’Instant de Guerlain pour Homme and the full-year effect of the women’s version
• Strong growth at BeneFit Cosmetics, Fresh and Acqua di Parma
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18January 19, 2005
502
Structure-15%
Change- 4%
Organic+18%
497
Q1 Q2 Q3 Q4
106128 123
Watches & JewelryFY 2004 Sales
140
in millions of Euros
2003 20042004
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19January 19, 2005
Watches & JewelryConfirmation of sales rebound
• Increasing market share of all brands and performed well in very competitive market
• Improvement in marketing effectiveness and good press coverage of all brands
• Confirmed success of all new collections• Formula One, Link, Carrera lines at TAG Heuer
• Open concept and women’s line Star at Zenith
• Chiffre rouge of Dior
• Liens and Class One of Chaumet
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20January 19, 2005
3 039
Structure0%
Change-6%
Organic+17%
3 378
Q1 Q2 Q3 Q4
755 787 814
Selective RetailingFY 2004 Sales
1 022
in millions of Euros
2003 20042004
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21January 19, 2005
Selective RetailingGood end of year
• DFS• Strong sales rebound following tourism recovery and rapid growth
of Chinese tourists• Opening of new Galleria in Okinawa
• Sephora• Excellent year in France and in Europe• New innovative services • Exclusive sale of trendy make up brands
and latest clinical skincare products• Double-digit sales growth on a comparable store basis
in 2004 for the fourth consecutive year in the US• Very promising start for first Sephora store in Toronto, Canada
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22January 19, 2005
LVMH FY 2004 Sales Conclusion
• Organic sales growth continued in 2004
• Year ends with strong momentum
• Continuing to concentrate on star brands, innovative and quality products, improving profitability
• Estimated 2004 operating income increase : around 10%
Objective for 2005
Tangible increase in Operating Income