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PARIS, France — LVMH, the world's largest luxury company, reported annual profit that beat estimates as fashion and leather-goods sales exceeded expectations in the final quarter.
Profit from recurring operations advanced 16 percent to 6.61 billion euros ($7.2 billion), Paris-based LVMH said Tuesday after markets closed. Analysts predicted 6.5 billion euros, according to the average of 27 estimates. Fourth-quarter revenue rose 5 percent on an organic basis, topping the 3.9 percent median estimate.
Operating scores of brands across six product groups from fashion to champagne has helped cushion LVMH from slowing luxury demand. The French company’s flagship label Louis Vuitton is growing again after a revamp. Demand for Bulgari jewelry is offsetting weak watch sales, while sales of champagnes such as Krug and Veuve Clicquot are helping compensate for low consumption of X.O. cognac in China.
Fashion and leather-goods is LVMH’s largest division, accounting for more than a third of sales and more than half of earnings before interest and tax. Quarterly sales at the unit rose 3 percent, beating estimates for growth of 1 percent.
By Paul Jarvis; editors: Matthew Boyle, Thomas Mulier.
