The pundits have been predicting strong results from the top performers in luxury fashion, and Louis Vuitton did not disappoint, breezing past the 10-billion-euro ($11.3 billion) mark for annual sales and topping expectations for growth into the end of last year — a tumultuous time for many companies.
As analysts emerge from a flurry of number crunching, evidence points to new levels of productivity and profitability from the star label of LVMH Moët Hennessy Louis Vuitton, reinforcing its dominant position. A higher concentration of sales in store spaces is proving key.
Louis Vuitton’s sales density likely reached an all-time high of 57,000 euros a square meter at the end of last year, beating rivals Hermès and Gucci, according to analysts at RBC Capital Markets. RBC pegs the figure of runner-up Hermès, which reports full-year sales today, at 52,000 euros a square meter. Gucci, meanwhile, has a long-term target of 45,000 euros a square meter, and parent company Kering is expected to offer insight on this figure when it reports full-year earnings on Feb. 12.
“The reality is that these three megabrands continue to increase their advantage [versus] the rest of the pack on this key metric,” noted RBC analysts in a research note Thursday.