Sales: $3.74 billion
Sales:$3.74 billion for perfumes and cosmetics. Corporate sales: $22.5 billion.
Key Personnel:Bernard Arnault, chairman and chief executive officer; Antonio Belloni, group managing director.
Major Products:Fragrances and cosmetic sold under brands such as Christian Dior, Guerlain, Givenchy, Kenzo, Acqua di Parma, Parfums Loewe, Benefit, Fresh and Makeup Forever. LVMH also owns Sephora, the beauty products retailer.
Dior—Fahrenheit 32 for men, Midnight Poison Addict Shine fragrances, Capture L’ Ore de Vie, Diorskin foundation, Backstage. Guerlain—L’Instant Magic, Eau de Shalimar, Aqua Allegoria Figue Iris and Aqua Allegoria Laurier Réglisse, Cruel Gardénia, Cherry Blossom delight, My Insolence. Parfums Givenchy—Organza Jasmin 2007, Very Irresistible Rosa Damascena 2007, Amarige Mimosa 2007, Vetyver, Rouge Interdit lipstick. Parfums Kenzo—TokyobyKenzo for men, Vintage Edition. Benefit—Love Your Look, That Gal face brightening primer. Makeup Forever—Aqua Eyes waterproof eyeliners. Acqua de Parma—Colonia Intensa. Parfums Loewe—Quizas, Quizas Quizas. Fendi Palazzo and Pucci Vivara fragrances.
Comments:LVMH’s perfumes and cosmetics business group recorded sales of $3.74 billion, with organic revenue growth of 12% in 2007. Profit from recurring operations rose to $350 million for the unit. The company attributed the gains to innovation and expansion of flagship lines.
Fragrances are the company’s main product sector, accounting for 55% of sales globally. Cosmetic sales represent 16% and skin care products accounting for 19% of LVMH’s beauty business sales.
Geographically, LVMH’s largest market for fragrances and cosmetics is Europe (excluding France), which accounted for 43% of sales. France accounted for 16% of sales; Asia (excluding Japan), 13%; U.S., 8%; and Japan, 6%. Other markets accounted for 14%.
In 2007, Parfums Christian Dior recorded solid revenue growth, which was accompanied by new and strong improvement in its profitability. Dior reported growth in Russia, while Asian sales benefited from Chinese activity.
In the U.S., Dior’s selective distribution strategy enabled it to gain market share with record growth rate. Perfume performed well, buoyed by the launch of Midnight Poison and Fahrenheit 32. Dior’s Capture helped drive skin care sales. On the makeup side, Rouge Dior, Diorskin foundation and the Backstage line recorded formidable performances, according to the company.
LVMH said Guerlain performed exceptionally well in 2007, outpacing the market with “remarkable revenue growth and sharply improved” profitability.
Parfums Givenchy posted steady growth in its priority markets and opened its first location in China. Makeup and skin care, which recorded double digit growth in all regions, gave the brand a boost.
Solid performance from its three foundation fragrances—FlowerbyKenzo, KenzoAmour and Eaux by Kenzo–drove steady growth at Kenzo.
With a loyal following, whimsical Benefit Cosmetics maintained a high level of profitability and continued growth in all markets, which are dominated by the U.S. and Great Britain. In addition, the brand enjoyed what LVMH described as a “very promising entry into the Chinese market.” Makeup Forever recorded excellent performances in all markets, with very substantial revenue growth driven by expansion of its retail network.