LVMH 2017 Net Profit Jumps, Beating Forecasts

By Euan Conley Features Dow Jones Newswires

French conglomerate LVMH Moet Hennessy Louis Vuitton SE (MC.FR) said Thursday that net profit for 2017 jumped 29%, fueled by a strong performance across all of the company's product divisions.

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LVMH's net profit for the year was EUR5.13 billion ($6.34 billion), compared with EUR3.98 billion in 2016. Analysts had expected the company to post a profit of EUR4.94 billion, according to a consensus provided by Factset.

The company, regarded as an industry bellwether encompassing a portfolio of dozens of luxury brands such as Fendi, high-end jeweler Bulgari and Hennessy Cognac, said that fourth-quarter revenue grew by 11% to EUR12.54 billion compared with the same period in the previous year. Sales for the entire year totaled EUR42.6 billion, buoyed by "exceptional profitability" at its flagship Louis Vuitton fashion brand.

"The excellent performance, to which all our businesses contributed, is due in part to the buoyant environment but above all to the remarkable creative strength of our brands and their ability to constantly reinvent themselves," said Bernard Arnault, Chairman and CEO of LVMH.

LVMH said it was "cautiously confident" for 2018 in an environment that continues to be supportive, despite unfavorable currencies and geopolitical uncertainties.

The company added that it would propose a dividend of EUR5 per share, an increase of 25% over the previous year.

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Write to Euan Conley at euan.conley@dowjones.com

(END) Dow Jones Newswires

January 25, 2018 12:31 ET (17:31 GMT)