Global luxury retailer LVMH said today that strong demand for its champagnes and Louis Vuitton leather bags helped it make a 73% leap in full-year profit, and said prospects for 2011 were good.
'2010 was a great vintage for LVMH,' said chairman and chief executive Bernard Arnault .
Annual net profit rose to €3.03 billion from €1.76 billion a year earlier, when many affluent consumers were spooked by the financial crisis.
LVMH, which also owns the Fendi fashion house and the TAG Heuer watch brand, posted a 19% rise in revenue to €20.32 billion from €17.05 billion a year ago - matching analysts' expectations.
Revenue in the fourth quarter, the industry's most important period of the year, rose 20% to €6.11 billion, further reflecting strong demand for luxury goods over the holiday period.
Sales in its fashion and leather goods division, home to Louis Vuitton, rose 20% to €2.12 billion in the fourth quarter, and the company said all its champagne brands recovered strongly over the year.
The firm said that it 'is well equipped to continue its growth momentum across all business groups in 2011.'
'LVMH enters 2011 with confidence and has set itself the objective of increasing, once again, its global leadership position in luxury goods,' it added.
