By Jason Chow And Ruth Bender
PARIS-- LVMH Moët Hennessy Louis Vuitton said Tuesday stronger
sales in the U.S. and Europe drove higher profits last year, though
demand from Chinese buyers remains soft as a crackdown on
corruption continues to weigh on high-end shoppers.
The luxury bellwether, which owns several fashion, jewelry and
liquor brands including Louis Vuitton, Fendi, Moët et Chandon and
Bulgari, said net profit jumped 65% to EUR5.65 billion ($6.47
billion) from EUR3.44 billion last year, buoyed by an exceptional
capital gain linked to its decision to relinquish its 23% interest
in rival Hermès International SCA.
Sales rose 6% to EUR30.64 billion euros in 2014 from EUR29.02
billion the previous year.
Fourth-quarter sales grew 10% to EUR9.24 billion, up from
EUR8.39 billion in the same quarter of 2013. Last year's figures
were restated to apply new accounting standards, LVMH said.
The revenue number slightly exceeded analyst expectations. A
poll of 11 analysts surveyed by Dow Jones Newswires forecast
revenue to reach EUR30.5 billion.
Organic revenue growth, which doesn't include the impact of
foreign exchange swings, acquisitions and asset sales, rose 5% in
2014, LVMH said.
Sales at the group's fashion and leather goods business--home to
Louis Vuitton, the group's leading brand--grew 10% for the
year.
LVMH said it is entering 2015 with "confidence" despite
geopolitical, economic and currency uncertainties.
Write to Jason Chow at jason.chow@wsj.com and Ruth Bender at
Ruth.Bender@wsj.com
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