Corporate Sales: $37.2 billion
Beauty Sales: $4.7 billion (Perfumes & Cosmetics)
Key Personnel: Bernard Arnault, chairman and chief executive officer; Antonio Belloni, group managing director; Pierre Godé, vice chairman, Christopher de Lapuente, Sephora; Philippe Schaus, DFS.
Major Products: Prestige perfume, makeup and skin care sold under brands including Christian Dior, Guerlain, Givenchy, Kenzo, Benefit, Fresh, Acqua di Parma, Make Up For Ever, Parfums Loewe, Fendi, Pucci, Sephora.
New Products: Dior Sauvage, Dior Addict Fluid Stick, Guerlain Abeille Royale, Parfums Givenchy Gentlemen Only and Dahlia Divin, Guerlain L’Homme Ideal, Kenzo Jeu d’Amour, Dior One Essential City Defense SPF 50, Benefit Air Patrol, Benefit They’re Real! Push-Up Eyeliner, Miss Dior Moisturizing Body Milk, Miss Dior Blooming Bouquet, Fresh Sugar Fig Lip Treatment.
Comments: Despite a somewhat questionable economy, consumers’ penchant for luxury goods—and travel—continues to pay out for LVMH. Sales that combine the two have been lifted due to frequent fliers picking up high-end personal products for themselves as well as to take home to friends and family left behind. And top-tier fragrances remain vital to European consumers—good news for LVMH’s numerous prestige designer scents.
Sales of perfumes and cosmetics rose 5%, compared to a 6% gain for the company overall. The Group achieved healthy gains in the U.S. and Asia (particularly China) and was boosted by top-tier performances from Christian Dior, Benefit and Guerlain. As far as overall business in the Perfumes & Cosmetics category, fragrance delivered 43% of sales, followed by makeup (39%) and skin care (18%). Europe (excluding France) represented 30% of sales, with Asia (excluding Japan) accounting for 26% of sales. At Parfums Christian Dior, gains were made in every key market, thanks to strong demand for J’adore, Miss Dior and Dior Homme fragrances, as well as higher skin care sales in Asia.
Guerlain’s sales also rose, and the brand gained market share in France and China. The high-profile launch of L’Homme Idéal helped boost the brand in key markets. Parfums Givenchy’s results were helped along by the debut of Gentlemen Only and Dahlia Divin fragrances, while Kenzo Parfums saw gains from the introduction of Jeu d’Amour.
The makeup segment also achieved excellent results thanks to products including Dior Addict Fluid Stick and Guerlain’s high-end skin care range Abeille Royale. Benefit continued its strong global growth momentum and is ranked as the leading makeup brand in the UK. Fresh and Make Up For Ever continued to gain market share.
News of Note
In February, Guerlain continued its focus on cosmetics, opening a new skin care and makeup production facility in Chartres, France, which is also known as “Cosmetic Valley.” The high-tech plant is expected to produce millions of export units.
In August, Sephora took a new retail step, announcing the launch of a $10 per month subscription box called Play! by Sephora. A limited amount of subscriptions became available in select markets in September, with a full national launch scheduled for early 2016. Each box is curated around a specific theme, and contains five, high-performance, deluxe-size, prestige products.
LVMH was off to an even better start in 2015, as many brands continued to gain market share. As a group, in the second quarter, revenue increased by 23% compared to the same period in 2014.
For the first half, the Perfumes & Cosmetics business group recorded organic revenue growth of 6%. Again, Dior’s iconic lines J’adore and Miss Dior continued to wow consumers, and a new men’s fragrance, Sauvage, launched this fall, with Johnny Depp in his first role as the “face” of a fragrance. Guerlain’s La Petite Robe Noire and Abeille Royale continued their allure. And when it came to cosmetics, Benefit, Make Up For Ever and Fresh exhibited excellent sales. “Remarkable momentum” was reported at Sephora, which continues to build its position in the beauty world, both in stores and online.