February 04, 2011 / 15:03 IST
LVMH, the world's biggest luxury group, posted forecast-beating fourth-quarter comparable sales on Friday, boosted by strong Christmas trading, and proposed a higher dividend on the back of a record year.
LVMH, whose Louis Vuitton brand accounts for half of group operating profit, said like-for-like revenue rose 13% in the last quarter of 2010, beating analyst expectations of an 11% increase.The group proposed raising its dividend by 27% to 2.10 euros a share.The move comes after smaller peer Hermes on Thursday unveiled a hefty interim dividend, its first ever.LVMH benefited from Chinese shoppers' growing appetite for luxury goods at home and abroad as well as from a steady rise in discretionary spending globally.Overall, the group generated a profit from recurring operations of 4.32 billion euros (USD 5.95 billion) on revenue of 20.32 billion euros, roughly in line with forecasts in a Reuters analyst poll.LVMH's wines and spirits unit, which includes number one champagne maker Moet & Chandon, bounced back from the severe slump of 2009, together with its watches and jewellery division, home to brands Chaumet, Fred, Zenith and Tag Heuer.Wines and spirits generated revenue growth of 19% in 2010 and lifted their profit from recurring operations by 22%, as all champagne brands, particularly the prestige cuvees, experienced a recovery.Watches and jewellery saw their profit from recurring operations double last year on 29% higher revenue.Louis Vuitton had another record year, LVMH added, with double-digit growth, while Fendi "performed well".Global luxury sales climbed 10% in 2010 after dropping 8% in 2009, the worst year on record for the industry, according to consultants Bain & Co. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
