Page 9 - Letter to shareholders – March 2019 - LVMH

SELECTIVE RETAILING

SUSTAINED GROWTH AT SEPHORA

AND REBOUND OF DFS’S

PROFITABILITY

DFS

The Selective Retailing business group achieved organic revenue REVENUE
growth of 6%, up 12% excluding the Hong Kong airport concession
closures. Profit from recurring operations was up 29%. €13,646m
+6% (1) (2)
Sephora had another year of growth and market share gains. Online sales
grew rapidly, especially in North America and Asia. The extension and PROFIT FROM
renovation of its distribution network continued in 2018 with around one RECURRING
hundred new stores opening around the world, including the new Nanjing OPERATIONS
Road store in Shanghai and the first Sephora-branded stores in Russia.
Le Bon Marché accelerated the development of its loyalty program and €1,382m
launched a new children’s department in the last quarter. The online platform, +29%
24 Sèvres, launched a year ago, developed actively. DFS progressed
strongly thanks to a particularly good performance in Hong Kong and CURRENT
Macao. The recently opened Gallerias in Cambodia and Italy also grew OPERATING MARGIN
rapidly. The closure of the loss-making Hong Kong Airport concessions
at the end of 2017 contributed to the rebound in profitability. 10.1%

(1) With comparable structure and exchange rates.
(2) +12% excluding the closure of Hong Kong airport
concessions in 2017.

LVMH – LETTER TO SHAREHOLDERS – MARCH 2019 – 9