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Tag: Dior Homme

  • Record results for LVMH in 2018

    Record results for LVMH in 2018

    The world’s largest luxury retailer LVMH shrugged off broader market pessimism overnight reporting record revenue of €46.8 billion last year, up 10 per cent over 2017. Excluding the closure of the unprofitable Hong Kong airport duty-free business in December 2017, the group’s organic growth was 12 per cent. Every business division delivered what the company described as “excellent performances”.

    Group profit rose a staggering 21 per cent to €10 billion with operating margin reaching 21.4 per cent, an increase of 1.9 percentage points.

    “LVMH had another record year, both in terms of revenue and results,” said chairman and CEO Bernard Arnault. “The desirability of our brands, the creativity and quality of our products, the unique experience offered to our customers, and the talent and the commitment of our teams are the group’s strengths and have once again made the difference.”

    Arnault said this year the company would continue to innovate and target investments combining tradition and modernity.

    “In an environment that remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again, our leadership in the universe of high-quality products.”

    The company’s flagship Louis Vuitton business was a standout for the group, contributing much of the 15 per cent organic sales growth of the fashion and leather goods business division where profit from recurring operations was up 21 per cent.

    “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 arrival of Kim Jones, the new artistic director of Dior Homme,” the company said in its earnings statement.

    “Fendi and Loro Piana continued to assert their know-how throughout their collections. Celine entered a new and ambitious stage of its development with the arrival of Hedi Slimane as artistic, creative and image director of the brand.”

    Givenchy, Loewe and Kenzo “progressed well” while the other brands, Berluti and Rimowa continued to gain momentum.

    Watches and jewellery profit soars

    LVMH’s watches and jewellery business recorded organic revenue growth of 12 per cent – and a stunning 37 per cent increase in profit from recurring operations.

    “Bulgari performed very well and gained market share. Its iconic jewellery and watchmaking lines Serpenti, Diva’s Dream, B.Zero1, Lvcea and Octo grew strongly.”

    Chaumet’s growth was driven by the success of the Liens and Joséphine collections, particularly in Asia.

    In the watchmaking sector, Tag Heuer continued to expand its range and Hublot enjoyed strong growth, partly due to high visibility as the FIFA World Cup official timekeeper.

    DFS returns to profit

    A return to profitability for the travel-retail business DFS after it exited its Hong Kong airport concessions at the end of 2017 was a highlight of LVMH’s ‘selective retailing’ business unit last year. The business group achieved a 12 per cent improvement in organic revenue growth (excluding the airport business from the 2017 base comparison) and a 29 per cent improvement in profit.

    “DFS progressed strongly thanks to a particularly good performance in Hong Kong and Macau. The recently opened Gallerias in Cambodia and Italy also grew rapidly,” said LVMH.

    Sephora enjoyed unspecified growth in sales and market share, with strong online sales growth in Asia and North America. About 100 new stores opened worldwide, including the new Nanjing Road store in Shanghai and the first Sephora-branded stores in Russia.

    Scents of success

    The perfumes and cosmetics business division achieved organic revenue growth of 14 per cent, driven by the performance of its flagship brands, with profit from recurring operations up 13 per cent.

    “Parfums Christian Dior experienced remarkable growth and increased its market share in all regions of the world. The launch of its new perfume Joy and the exceptional worldwide success of Sauvage and the other iconic perfumes J’adore and Miss Dior are behind the strong growth of the Maison,” said LVMH.

    “Makeup and skincare also grew rapidly. Guerlain progressed well, driven in particular by the success of Abeille Royale in skincare and Rouge G in makeup. Benefit strengthened its leading position in the eyebrow segment and Parfums Givenchy accelerated its performance, thanks in particular to makeup and its new perfume L’interdit. Fresh and Fenty Beauty by Rihanna continued their exceptional growth.”

    Strong spirits

    The wines and spirits business group achieved organic revenue growth of 5 per cent and profit from recurring operations also increased by 5 per cent.

    “The business group reaffirmed its leadership position by pursuing its value strategy and balanced geographic development.”

    The Hennessy business enjoyed “strong momentum” in Mainland China, LVMH said.

  • Kim Jones is the new artistic director of Dior Homme

    Kim Jones is the new artistic director of Dior Homme

    Kim Jones, the British menswear designer who left Louis Vuitton in January, will become the artistic director at Dior Homme in April. He replaces Kris Van Assche, who had helmed the menswear arm of Dior since 2007.

    Jones is a widely liked figure in fashion, with 345k Instagram followers and famous friends on speed dial including Kanye West and David Beckham, both regular guests at his show. His finale at Louis Vuitton took things to another level. He walked to applause, flanked by two of his best friends, Naomi Campbell and Kate Moss, wearing Louis Vuitton-monogrammed trench coats. Before the Dior Homme announcement, he was linked to top jobs at Versace and Burberry.

    In a statement, Jones said: “I am deeply honoured to join the house of Dior, a symbol of the ultimate elegance.” He also thanked Dior CEO Pietro Beccari for the opportunity, the man widely thought to be the mastermind behind the move. He worked with Jones at Louis Vuitton, and moved to Dior in February. Both brands are part of the LVMH luxury group. The CEO paid tribute to Jones in his own statement. “I admire his creative vision, which combines both his own inspirations of contemporary culture and his own reinterpretation of specific codes and heritage of a house,” said Beccari.

    Jones’s tenure at Louis Vuitton was characterised by just that combination. The designer managed to mix the wealthy traveller feel of the house that began as a luggage brand in 1854 with the cool streetwear references of his own history. As a young designer, he started his career in London in the 90s, working with sportswear brands including Umbro, peaking with a collaboration between Louis Vuitton and Supreme at the beginning of 2017. Something unthinkable the previous decade – in 2000 the streetwear label received a cease-and-desist letter from Vuitton for using their famous monogram on a skateboard – was made tangible by Jones. It was a big hit. Consumers queued up outside pop-up stores in July, with many of the pieces resold for 1.5 times their original price.

    Dior Homme will be hoping that Jones can bring his cool factor to the brand. Van Assche’s reign has been successful but without fireworks. His aesthetic was sharp suiting with graphic details, and he worked with celebrities including Robert Pattinson, A$AP Rocky, Mr Robot’s Rami Malek and Depeche Mode’s Dave Gahan.

    Van Assche was promoted from the design studio to lead Dior Homme in 2007, with the departure of Hedi Slimane. It was Slimane – due to present his first collection for LVMH brand Celine this autumn – who first gave Dior Homme a jolt of stardust in the noughties, during his seven-year stint. His ultra-skinny rock’n’roll tailoring was favoured by rock stars of the era including Pete Doherty and Johnny Borrell. Van Assche built on this work with similar silhouettes and references. It is understood that the Belgian designer will stay within the LVMH group with an announcement imminent.

    Jones’s first collection for Dior Homme will be in Paris in June. A-list stars in the front row and cool references on the catwalk can be expected.

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  • LVMH will expand to eyewear business

    LVMH will expand to eyewear business

    Luxury brand group LVMH is thinking about taking its eyewear business in-house.

    This could be a further blow for Italian eyewear group Safilo, which lost the Armani licence in 2013 and those for the Kering Group labels (Alexander McQueen, Bottega Veneta, Gucci and Saint Laurent) at the end of 2014, reports CPP-Luxury.com.

    Italian investment bank Mediobanca has published a report about Safilo, owned by Dutch investment fund Hal, focussing on its announcement that its licence agreement with Celine has been terminated while its contract with Christian Dior has been extended until 2020. The licence for Celine’s eyeglass collections – the LVMH label joined Safilo’s portfolio in 2012 – ends on December 31.

    While the licence agreement for the design, production and distribution of eyeglasses and sunglasses for Dior and Dior Homme, also part of LVMH’s galaxy, has been extended until the end of 2020, Mediobanca says the extension is for three years only, not for seven years as was the case for the previous contract, renewed in September 2010.

    The bank’s analysts noted that the standard renewable licence contract is for five years.

    “We believe markets are much more volatile than in the past, and renegotiating contracts on a more frequent basis may be to the advantage of both parties,” says the bank. “But we think this could also signal a change in LVMH’s approach as the group has the financial strength to internalise its eyewear business, as Kering did a few years ago.”

    LVMH has been managing the eyewear collections for its leading brand, Louis Vuitton, internally for several years.

    Mediobanca estimates the sales for Celine and Dior eyeglasses collections are worth respectively €40 million (US$41 million) and €200 million. As well as these, there are the sales for the eyewear lines of Fendi, Givenchy and Marc Jacobs, all licensed to Safilo. Altogether, LVMH brands are worth €350 million in annual revenue for the eyewear group, equivalent to nearly 30 per cent of its total revenue, which Mediobanca pegs at €1.2 billion.

    The bank report also highlighted the Safilo portfolio’s “marked reliance on one single client”, plus the weakness of its own brands.

  • Dior Homme Kuala Lumpur debut

    Dior Homme Kuala Lumpur debut

    The first Dior Homme Kuala Lumpur boutique has opened, inside Suria KLCC shopping centre.

    While Dior has several boutiques in the Malaysian capital, this is the first store dedicated to the French luxury label’s men’s range.

    White dominates the new boutique’s interior design, contrasting with hardwood floors and black accents, all of which allow the product to be the hero.

    The store stocks ready-to-wear collections, leather goods, footwear, eyewear and jewellery.

    To mark the Dior Homme brand’s arrival in Malaysia, a limited edition clutch numbered from 1 to 10 was released.