LVMH saw record revenues in 2010
Global luxury retailer LVMH said Friday that strong demand for its champagnes and Louis Vuitton leather bags helped it make a 73 percent leap in full-year profit, and said prospects for 2011 were good.
"2010 was a great vintage for LVMH," said chairman and CEO Bernard Arnault in a statement as the firm's annual earnings were announced.
Annual net profit rose to 3.03 billion euros ($4.13 billion) from 1.76 billion euros a year earlier, when many affluent consumers were spooked by the financial crisis.
LVMH, which owns the Fendi fashion house and the TAG Heuer watch brand, posted a 19 percent rise in revenue to 20.32 billion euros from 17.05 billion a year ago, matching analysts' expectations.
Revenue in the fourth quarter, the industry's most important period of the year, rose 20 percent to 6.11 billion euros, further reflecting strong demand for luxury goods over the holiday period.
Sales in its fashion and leather goods division, home to Louis Vuitton, rose 20 percent to 2.12 billion euros in the fourth quarter, and the company said all its champagne brands recovered strongly over the year.
The firm said in its statement that "LVMH is well equipped to continue its growth momentum across all business groups in 2011."
"LVMH enters 2011 with confidence and has set itself the objective of increasing, once again, its global leadership position in luxury goods," it said.
© 2011 AFP