10.28.10
11. LVMH
France
www.lvmh.com
Beauty Sales: $3.9 billion (Perfumes and Cosmetics)
Corporate Sales: $24.4 billion
Key Personnel: Bernard Arnault, chairman and chief executive officer; Antoine Bernheim, vice chairman; Pierre Godé, vice chairman.
Major Products: Fragrances, cosmetics and skin care products sold under brand names such as Christian Dior, Acqua di Parma, Guerlain, Parfums Givenchy, Parfums Kenzo, Parfums Loewe, Fresh, Make Up For Ever, Benefit and Sephora.
New Products: Fragrances—Idylle, Ange ou Démon Le Secret, Eat, Pray, Love, FlowerbyKenzo Essentielle, Crescent Row, Play for Men; Skin care—Abeille Royale, Capture Totale One Essential serum, Instant Rescue Eye Treatment, XP Nuit; Cosmetics—Dior Sérum de Rouge, Dior 5 Couleurs, Rouge G lipstick, Phenomen’Eyes mascara, Hello Flawless foundation.
Comments: LVMH’s divisions fared differently in 2009. Wines & Spirits and Watches and Jewelry brands bore a great deal of the brunt of fallen sales in 2009 due to destocking, but Louis Vuitton registered double-digit global growth and progress in all of its product categories. While Fragrance and Cosmetics sales dipped 4.4% last year, LVMH increased profit and market share during the downturn. By region, Europe (excluding France) accounted for 39% of sales, followed by France, 17%; Asia (excluding Japan), 16%; other, 13%; U.S., 8% and Japan, 7%. By category, perfumes represented 53% of sales, followed by cosmetics, 28% and skin care products, 19%.
Sephora continued to expand globally. Parfums Christian Dior continued its success with its iconic lines including Miss Dior, J’adore and Eau Sauvage, along with its innovations in skin care and makeup. Make Up For Ever continued at an enviable growth rate in the U.S., France and China.
By the fourth quarter, Perfumes and Cosmetics had returned to growth with organic revenue increasing by 2%, following the impact of destocking by several retailers in the first half. Guerlain did well, due notably to the popularity of the Rouge G lipstick and its new perfume, Idylle. Parfums Givenchy benefited from the success of its Play and Ange ou Démon Le Secret perfumes. Benefit made considerable progress due to its international expansion.
In July, Bernard Arnault, chairman and chief executive officer, reported, “The first half of 2010 has confirmed the rebound seen at the end of last year, leading to double-digit organic revenue growth at all our business groups and a strong improvement in our results.” For the first half of 2010, corporate sales reached $11.1 billion. Perfume and cosmetic sales increased 10% to $1.8 billion.
LVMH’s Perfumes and Cosmetics business benefited from the joint impact of the turnaround in orders from distributors. Sales were highest in Rest of Asia, followed by the U.S., rest of Europe, France and Japan. The increase was partially attributed to the popularity of Fahrenheit and Miss Dior Chérie fragrances, Capture Totale One Essential skin care and DiorShow Extase mascara.
Parfums Christian Dior achieved an excellent performance in the first half, confirming its leadership position in Europe and the Middle East and achieving rising growth in the makeup segment in the U.S. Guerlain also did well, strengthening its position in perfume, makeup and skin care. Parfums Givenchy grew significantly, and Play performed well thanks to Justin Timberlake. Benefit continued its rapid and profitable expansion. Make Up For Ever maintained its high growth in all markets.
In July, LVMH announced an agreement to acquire a 70% controlling stake in Sack’s, a leading online retailer of fragrances, cosmetics and toiletries and one of the leading companies in the specialty beauty distribution sector in Brazil, marking Sephora’s entry into one of the largest and fastest-growing beauty markets worldwide.
Big plans surround the rest of the year for all the Perfumes and Cosmetics brands. Parfums Givenchy has introduced a version of the perfume Play for women. Make Up For Ever will reveal a new line of lipsticks. Fendi will return to perfume with Fan di Fendi. Pucci will also boast a new fragrance.
France
www.lvmh.com
Beauty Sales: $3.9 billion (Perfumes and Cosmetics)
Corporate Sales: $24.4 billion
Key Personnel: Bernard Arnault, chairman and chief executive officer; Antoine Bernheim, vice chairman; Pierre Godé, vice chairman.
Major Products: Fragrances, cosmetics and skin care products sold under brand names such as Christian Dior, Acqua di Parma, Guerlain, Parfums Givenchy, Parfums Kenzo, Parfums Loewe, Fresh, Make Up For Ever, Benefit and Sephora.
LVMH’s acquisition of Sack’s is leading Sephora into Brazil in a big way. |
Comments: LVMH’s divisions fared differently in 2009. Wines & Spirits and Watches and Jewelry brands bore a great deal of the brunt of fallen sales in 2009 due to destocking, but Louis Vuitton registered double-digit global growth and progress in all of its product categories. While Fragrance and Cosmetics sales dipped 4.4% last year, LVMH increased profit and market share during the downturn. By region, Europe (excluding France) accounted for 39% of sales, followed by France, 17%; Asia (excluding Japan), 16%; other, 13%; U.S., 8% and Japan, 7%. By category, perfumes represented 53% of sales, followed by cosmetics, 28% and skin care products, 19%.
Sephora continued to expand globally. Parfums Christian Dior continued its success with its iconic lines including Miss Dior, J’adore and Eau Sauvage, along with its innovations in skin care and makeup. Make Up For Ever continued at an enviable growth rate in the U.S., France and China.
By the fourth quarter, Perfumes and Cosmetics had returned to growth with organic revenue increasing by 2%, following the impact of destocking by several retailers in the first half. Guerlain did well, due notably to the popularity of the Rouge G lipstick and its new perfume, Idylle. Parfums Givenchy benefited from the success of its Play and Ange ou Démon Le Secret perfumes. Benefit made considerable progress due to its international expansion.
In July, Bernard Arnault, chairman and chief executive officer, reported, “The first half of 2010 has confirmed the rebound seen at the end of last year, leading to double-digit organic revenue growth at all our business groups and a strong improvement in our results.” For the first half of 2010, corporate sales reached $11.1 billion. Perfume and cosmetic sales increased 10% to $1.8 billion.
LVMH’s Perfumes and Cosmetics business benefited from the joint impact of the turnaround in orders from distributors. Sales were highest in Rest of Asia, followed by the U.S., rest of Europe, France and Japan. The increase was partially attributed to the popularity of Fahrenheit and Miss Dior Chérie fragrances, Capture Totale One Essential skin care and DiorShow Extase mascara.
Parfums Christian Dior achieved an excellent performance in the first half, confirming its leadership position in Europe and the Middle East and achieving rising growth in the makeup segment in the U.S. Guerlain also did well, strengthening its position in perfume, makeup and skin care. Parfums Givenchy grew significantly, and Play performed well thanks to Justin Timberlake. Benefit continued its rapid and profitable expansion. Make Up For Ever maintained its high growth in all markets.
In July, LVMH announced an agreement to acquire a 70% controlling stake in Sack’s, a leading online retailer of fragrances, cosmetics and toiletries and one of the leading companies in the specialty beauty distribution sector in Brazil, marking Sephora’s entry into one of the largest and fastest-growing beauty markets worldwide.
Big plans surround the rest of the year for all the Perfumes and Cosmetics brands. Parfums Givenchy has introduced a version of the perfume Play for women. Make Up For Ever will reveal a new line of lipsticks. Fendi will return to perfume with Fan di Fendi. Pucci will also boast a new fragrance.