Lvmh effect on luxury stocks in Europe. The French giant closed 2018 with sparkling results and the day after the publication it opened the session on the Paris Stock Exchange, gaining more than 6% to 276 euros per share, and also dragging Italian stocks into the atmosphere of enthusiasm in Piazza Affari: mid-morning Moncler and Salvatore Ferragamo (who presented i preliminary accounts) are at the top of the Ftse Mib with increases of 4,8% and 4% respectively. Louis Vuitton Moet Hennessy, who in its rich portfolio it also has several made in Italy brands such as Acqua di Parma, Bulgari, Fendi and Loro Piana, recorded in the year just ended a 10% growth in revenues, to 46,8 billion euros, while the operating result reached the threshold of 10 billion, boasting an increase of 21%, also thanks to the 1,9% improvement in the margin equal to 21,4%. Net income also did very well, rising to 6,3 billion, an increase of 18%. The group's cash flow improved by 16% to 5,4 billion euros, while debts fell by 23% to 5,4 billion.
The organic growth of sales, underlined the group note, was 11% and even rises to 12% if we do not take into account the impact of the closure at the end of 2017 of the concessions at the Hong Kong airport. “All geographical areas boasted good growth – is written in the press release – growth that in the fourth quarter alone was equal to 9% at an organic level or 10% excluding the impact of the stoppage of the Hong Kong airport concession”. The quarter benefited from the performance of the fashion, leather goods, fragrances and cosmetics divisions, all of which boasted double-digit organic growth.
“2018 is an exceptional new year for Lvmh with record sales and profit. The operating result has exceeded the threshold of 10 billion”. As the president and CEO of the Lvmh group, Bernard Arnault, commented on the 2018 numbers. “The creativity and quality of our products, the unique experience offered to our customers both in stores and on the internet, the talent and commitment of our team are the elements that made the difference ”. For the entrepreneur, “Lvmh in 2019 will continue the dynamics of innovation and investments in order to combine tradition and modernity, long-term vision and responsiveness. Thus, in a context that is uncertain at the beginning of 2019, we are counting on the desirability of our brands to further strengthen ourselves in high quality products".
