LVMH bucks bad trend in luxury goods market
LVMH said today that strength in Europe, the US and Japan helped it buck an unfavourable trend which has seen luxury goods companies suffer as a result of the slowing global economy.
The company, which owns fashion houses Dior and Louis Vuitton, said recorded revenue rose by 16 per cent to €35.7bn (£27bn) in 2015. This beat analysts estimates for €35.1bn, according to Reuters.
Meanwhile, fourth quarter revenue rose 12 per cent, as the company's strength in Europe, US and Japan helped offset weakness in some Asian countries.
Growth in the luxury goods sector has suffered due to a slowdown in the global economy, led by China. Nevertheless, LVMH's broad product offering, which ranges from champagne to shoes, has helped it offset this.
Its fashion and leather division, accounting for the bulk of sales and profits, saw reported revenue rise 14 per cent.
Bernard Arnault, chairman and chief executive of LVMH, said: "The 2015 results confirm the capacity for LVMH to progress and gain market share despite economic and geopolitical uncertainty."
He added: "We can rely on the desirability of our brands and the agility of our teams to further strengthen in 2016 our leadership in the world of high quality products."