Sales: $5.0 billion
Key Personnel: Bernard Arnault, chairman and chief executive officer; Antonio Belloni, group managing director; Nicolas Bazire, development and acquisitions; Jean-Jacques Guiony, finance; Chris de Lapuente, Sephora and beauty; Philippe Schaus, duty free stores; Jean-Baptiste Voisin, strategy.
Major Products: Perfumes and Cosmetics. Brands include Guerlain, Acqua de Parma, Parfums Christian Dior, Givenchy Parfums, Perfumes Loewe, Benefit Cosmetics, Make Up For Ever, Kenzo Parfums and Fresh.
New Products: Benefit Brow; Sauvage, Nouvelle Eau Lumiére and Poison Girl, Kenzo L’Elixir, Féve Délicieuse and Totem fragrances; Dior Addict lipstick, Nude Air serum foundation; Benefit Roller Lash mascara; Make Up For Ever Ultra HD and Step foundations, Artist Plexi-Gloss and Cha Ling cosmetics.
Comments: Sales of perfumes and cosmetics account for just 13% of LVMH’s corporate sales—fashion and leather goods, in contrast, represent 35%. But whether one is wearing a dress or a fragrance, LVMH is all about luxury and despite global turmoil the group is weathering the storm successfully. Helped along by favorable exchange rates, corporate sales rose 16% to a record €35.7 billion.
The perfumes and cosmetics business posted a 15% gain, with 7% organic growth. Perfumes accounted for 41% of sales, just ahead of makeup (40%). Skin care was a distant No. 3 at 19%.
By region, Asia (ex-Japan) accounted for 29% of sales, followed by Europe (ex-France), 26%; other markets, 15%; US, 14%; France, 12% and Japan, 4%.
Actor Johnny Depp’s marital woes may be in the headlines, but there’s no denying he’s made a great pitchman for Sauvage, a new men’s fragrance that LVMH insists has had unprecedented worldwide success. Sauvage has thrived as a member of Parfums Christian Dior House, where other successful brands include J’adore, Miss Dior and Dior Homme.
Guerlain’s cosmetics and fragrance sales increased, getting a boost from La Petite Robe Noire and L’Homme Idéal. Guerlain’s new skin care and makeup manufacturing site in Chartres is churning out products in France’s Cosmetic Valley.
Sales in every product category rose within the Parfums Givenchy unit. One of the biggest introductions was Live Irrésistible, a women’s scent. Kenzo successfully introduced Flower by Kenzo L’Elixir.
Among its cosmetics holdings, Benefit continued to gain market share in the US, Europe and Middle East while Make Up For Ever successfully introduced two new foundations: Ultra HD and Step 1. Fresh’s rapid expansion in Asia continued and the brand entered Europe with counters at Galeries Lafayette in Paris and Harrods in London.
For the first quarter of 2016, corporate sales rose 4% to more than €8.6 billion. By region, Asia (ex-Japan) accounted for 29% of sales; followed by the US, 25%; Europe (ex-France), 17%; other markets, 12%; France, 9% and Japan, 8%. Perfume and cosmetic sales rose 7% to more than 1.2 billion eurose driven by gains in the US and Europe. LVMH credited the gains to the successful launch of Sauvage fragrance, as well as the popularity J’adore.