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LVMH PINK:LVMUY Reports Upbeat on 2013 Outlook, FY Profit Increases 13%

LVMH Moet Hennessy Louis Vuitton SA, PA:MC, PINK:LVMUY,the world’s largest luxury-goods maker, reported a 13% increase in FY profit on growth in the US and Asia and said the outlook for 2013 is “favorable.”

Profit from recurring businesses rose to EUR 5.92-B (US$8.04-B), the Paris-based maker of Zenith watches said Thursday after markets closed. The average of 22 estimates was EUR 5.95-B.

All LMVH divisions boosted earnings as wealthy consumers continued to increase spending on items such as Hennessy cognac, Tag Heuer watches and Christian Dior perfumes.

Organic sales growth improved to 8% in Q-4 from 6% in Q-3 the slowest since Y 2009.

Growth in Q-4 organic sales was led by a 13% increase at the selective-retailing unit, which includes DFS duty-free stores and the Sephora cosmetics chain.
both showed 9% increases, the company said, beating a 6% gainer at the watches & jewelry unit.
The wine & spirits and perfume & cosmetics divisions

Organic sales growth at the fashion and leather-goods unit was 5% in the final quarter, the company said, showing no improvement from the previous 3 months.

LVMH raised Louis Vuitton’s prices by 8% in Europe in October after weakening sales of the brand’s monogrammed handbags partly led the company to report its slowest quarterly organic revenue growth since the last 3 months of Y 2009.

The US was the best performing region in the Quarter, boosting organic sales 11%. That exceeded gains of 8% in Asia, 5% in Europe and 3% in Japan.

The luxury-goods maker expects continued growth this year.

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