lvmh sales 2003...sephora europe • excellent customer reception of loyalty card launched in france...

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Page 1: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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LVMHSales 2003

22nd January 2004

Page 2: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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Sales 2003 Highlights

In a difficult environment,

• Organic sales growth continued• Full year +4%

• Accelerated in Q4 to +8%

• Exceptional - double digit - organic sales growthat Louis Vuitton full year and Q4

• Successful product launches for Perfumes

• DFS and Sephora US profitable

• Watches & Jewelry resume growth

Page 3: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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LVMHSales 2003

In millions of Euros

12 693

Structure-1%

Change-9%

Organic+4%

11 962

Q1 Q2 Q3 Q4

2 801 2 435

2003

2 9343 792

2002 2003

Page 4: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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Analysis of sales increasein Q4 2003

In millions of Euros

3 848

Structure -1%

Change-8%

Organic+8%

3 792

Q4 2002 Q4 2003

Page 5: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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France

Europe

USA (inc. Hawaii)

Japan

Asia

Others7%

13%17%

21%

26%

16%

LVMH Sales 2003 by region in Euros

In % of total sales

2003

Page 6: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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Sales 2003 Evolution in the US (in dollars)

Wines & Spirits +7%Fashion & Leather +12%of which Louis Vuitton +38%

Sephora +21%DFS +2%Total LVMH Group + 6%

Page 7: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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Sales 2003 Evolution in Japan (in Yen)

Champagne & Wines +19%

Hennessy Cognac -11%

Fashion & Leather +12%of which Louis Vuitton +13%

Perfumes & Cosmetics +15%

Watches & Jewelry +8%

Total LVMH Group + 12%

Page 8: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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Wines & Spirits Sales 2003

In millions of Euros

Structure- 1%

Change- 11%

Organic+5%

2 266

855

1 411

2 114

1 335

407

779

390550

767

2002 20032003

Champagne & Wines

Cognac & Spirits

197 156 211 215

210 234339

552

Q1 Q2 Q3 Q4

Page 9: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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Wines & Spirits - Champagne Good resistance of key brands

• Increase in annual champagne volumes of 1% (excluding Pommery and Canard-Duchêne)

• Positive depletions at end December in US• Strong sales increases in UK and Japan• Good progress in still wine sales• Continued improvement of international distribution

in partnership with Diageo• Disposal of non strategic assets

(Canard Duchêne,Chandon Espagne)

Page 10: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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Wines & Spirits - Cognac Sustained increase in the US

• Increase of 5% in Hennessy volumes in 2003• Continued sales growth in the US• Positive depletions in the US• Good performance in Asian markets – Taiwan

and China in particular• Strong growth of VSOP & XO quality in Q4 • December launching of Hennessy’s Ellipse,

a super-premium cognac• Significant negative currency effect partially

compensated for at operating income level by a good hedging cover

• Sale of Hine in first half 2003

Page 11: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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Fashion & Leather Goods Sales 2003

In millions of Euros

Organic+9%

Change-11%

Structure+1%

4 2074 150

Q1 Q2 Q3 Q4

1 068

8281 035

1 219

2003 2002 2003

Page 12: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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Louis Vuitton - A remarkable increasein 2003 environment

• Double digit growth at constant currency• Strong sales increases to local customers, US up 38%

in dollars for the year• Increase in production capacity in response to a strong

demand (notably for the multico bags)• Considerable success of Tambour watch collection• Continued expansion of distribution network

• New stores in Q4 in Riyadh , Guangzhou (China), Tainan(Taiwan), Pacific Place HK (extension)

• 317 stores including 76 in Europe, 47 in Japan,72 in Pacific Asia and 91 in the US

Page 13: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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Fashion & Leather GoodsParticularly strong growth in Q4

• Acceleration of organic growth in Q4• +12% following strong Q4 2002 growth

• Double digit sales increase at constant currencyat Céline in 2003, with particularly good Q4 performance in Japan

• Fendi: reinforced quality of its distribution network, double-digit sales increase at constant currency in Q4

• Double digit full year sales increases for Marc Jacobs, Pucci and Berluti

Page 14: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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Perfumes & Cosmetics Sales 2003

In millions of Euros

2 336

Organic+4%

Structure-4%

Change-7%

2 181

Q1 Q2 Q3 Q4

486 488 506

701

2003 2002 2003

Page 15: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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Perfumes & CosmeticsStrong innovation

• Organic growth of 4% in 2003, outperforming global market,despite difficult US and travel retail markets

• Good performance at Parfums Christian Dior,particularly in Japan

• Successful launch of new products• Capture R60/80 beauty product at Dior• Womens’ perfumes - Very Irresistible de Givenchy

and L’Instant de Guerlain• Men’s fragrances - Kenzo Air at Kenzo Perfumes

and Higher Energy at Dior

• Strong progress at BeneFit Cosmetics• Disposal of Kenneth Cole, Parfums Marc Jacobs

and Michael Kors licenses

Page 16: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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Watches & JewelrySales 2003

In millions of Euros

552

Structure-1%

Change- 8%

Organic0%

502

Q1 Q2 Q3 Q4

97113 125

167

2003 2002 2003

Page 17: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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Watches & JewelrySecond half recovery in sales

• Recovery in sales in second half in difficult marketand competitive environment

• Reinforced creativity of brands• New Formula 1 and Link products (TAG Heuer)• New models of Chronomaster, Open and Star (Zenith)• New Liens and Frisson (Chaumet) and Move One (Fred) collections• Chris 47, Admit it and La D at Dior

• Targeted expansion of the international distribution network• Opened 3 De Beers stores in Tokyo department stores• New Chaumet stores in Geneva and corners/shop in shops in Japan

• Sale of Ebel part of strategy to concentrate on strong brands

Page 18: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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Selective Distribution Sales 2003

In millions of Euros

3 337

Organic+1%

Change-10%

Structure0%

3 039

Q1 Q2 Q3 Q4

745608

725

961

2003 2002 2003

Page 19: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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Selective DistributionDFS

• Progressive recovery of tourism• Increased sales, at constant currency in Q4…

• …. full year sales lower than 2002

• Re-negotiation of airport concessions(notably Hawaii and Los Angeles)

• Continued cost reductions (transfer of certain corporate functions to Hong Kong, close to strong potential markets)

Objective of profitability in 2003 achieved

Page 20: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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Selective DistributionSephora

Europe• Excellent customer reception of loyalty card launched in France

in May • Partnership agreement in Russia : opening of the first store

in Moscow in December 2003 • Association in Poland, bringing total number of stores now open

there to 41

United States• Double digit comparable store sales growth in dollars• Achieved objective of Sephora US profitablity in 2003 • sephora.com extended to Canada

Total = 500 stores at end of 2003,of which 184 in France and 82 in US

Page 21: LVMH Sales 2003...Sephora Europe • Excellent customer reception of loyalty card launched in France in May • Partnership agreement in Russia : opening of the first store in Moscow

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Sales 2003 Conclusion

• Solid organic growth for the year, accelerated in Q4

• Gains market share

• Continued to concentrate on strong brands, innovativeand quality products, improve profitability

• Operating Income around +7%

Objective for 2004Tangible increase in Operating Income