Page 6 - Letter to shareholders – March 2019 - LVMH

FASHION & LEATHER GOODS

EXCEPTIONAL PERFORMANCE OF

LOUIS VUITTON ACROSS ALL ITS

BUSINESSES AND STRENGTHENING

OF OTHER BRANDS

Christian Dior Couture

The Fashion & Leather Goods business group achieved organic revenue REVENUE
growth of 15% in 2018. Profit from recurring operations was up 21%. €18,455m
Louis Vuitton delivered an exceptional performance, to which all businesses +15% (1)
and regions contributed. Its creative strength lies notably in its iconic leather
goods lines which are continuously rejuvenated, and in its ready-to-wear and PROFIT FROM
shoe lines, designed by the respective Louis Vuitton Creative and Artistic RECURRING
Directors, Nicolas Ghesquière for the women’s collections and Virgil Abloh, OPERATIONS
who joined in 2018, for the men’s collections. The qualitative development
of its stores continued in a very selective way. It is noteworthy that Louis €5,943m
Vuitton is the only brand in the world to never hold sales nor sell through + 21%
outlets. Christian Dior had an excellent first full year within LVMH thanks to
the creativity of Maria Grazia Chiuri for the Women’s collections and to the CURRENT
arrival of Kim Jones, the new Artistic Director of Dior Homme. Fendi and OPERATING MARGIN
Loro Piana continued to assert their know-how throughout their collections.
Celine entered a new and ambitious stage of its development with the arrival 32.2%
of Hedi Slimane as Artistic, Creative and Image Director of the brand. His first
runway show in October was a global success. Givenchy, Loewe and Kenzo
progressed well. The other brands, Berluti with the arrival of Kris Van Assche,
and Rimowa continued their dynamic momentum. (1) With comparable structure and exchange rates.

6 – LVMH – LETTER TO SHAREHOLDERS – MARCH 2019