Louis Vuitton’s Blockbuster Results Point to New Levels of Profitability for LVMH’s Star Brand

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.

This story was reported by WWD and originally appeared on WWD.com. To read the full story, please go to WWD.com.

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