Louis Vuitton 2005 Annual Report Download - page 32

LVMH 2005 FASHION AND LEATHER GOODS
LOUIS VUITTON DEMONSTRATES AN EXCEPTIONAL
CREATIVE VITALITY Inspired by the savoir-faire of its artisans,
2005 also provided further proof of Louis Vuitton capacities for creation
and renewal. The Monogram Cerises line early in the year, followed by the
Denim and Antigua lines and the creation of a Cruise leather goods collec-
tion are just a few illustrations of the exceptional vitality of the brand and
the success of the Marc Jacobs creations.
Louis Vuitton also enhanced its traditional lines, which continue to confirm
their success. The new Manhattan model in the Monogram fabric is a best-
seller. The Damier leather goods line posted an excellent performance in
2005. Ready-to-wear lines and footwear recorded strong growth. In the
watch segment, the successful development of Tambour, with Lovely Tambour,
Tambour Régate in the Louis Vuitton Cup line, and Tambour Diving, was
enhanced with the launch of the Speedy watch. The Emprise jewelry collec-
tion introduced in 2004 performed very well. Finally, in the fall of 2005
Louis Vuitton launched its first sunglasses collection, unveiled for the
public at the opening of the Maison des Champs-Élysées.
With the deployment of two very strong promotional campaigns spear-
headed by international star Uma Thurman, Louis Vuitton’s communi-
cations strengthened its image worldwide. The visibility it received from
the first stages of the Louis Vuitton Cup, the preparatory regattas for
the America’s Cup 2007, also increased its media presence.
FENDI: AN EXCELLENT TREND Fendi achieved an excellent
performance in 2005, the year of its 80th anniversary. The Italian brand
recorded double-digit growth in revenue, which, combined with a
strengthened organization and higher productivity in its stores, gener-
ated a substantial improvement in its profitability.
Sales of leather goods surged thanks to the vitality of the traditional
Selleria and Double F lines and the success of the new designs. The Spy
line, in particular, has been so successful that there are customer waiting
lists. Fur and footwear sales also jumped significantly.
Fendi continued to improve its retail network. This work included the
renovation of twenty stores using the new concept, which is lighter,
contemporary and luxurious, adopted to express the values of the
Italian brand. The 80th anniversary celebration was marked by the
inauguration of the Fendi Palace in Rome, the focus of intense media
coverage, followed by the opening of a flagship store in New York.
These two events, which received heavy press coverage, along with the
quality of its advertizing campaigns, contributed to the increase in the
recognition for the brand worldwide. Flagship stores also opened in
Osaka and Hong Kong (renovation).
TRENDS FOR THE BUSINESS GROUP’S OTHER BRANDS
Donna Karan enjoyed the fruits of the efforts made to improve its
creations. Sales of accessories, products with a strong growth poten-
tial for the brand, recorded very strong growth. Donna Karan is also
benefiting from the increased selectivity of its retail network and the
gradual deployment of a new exclusive boutique concept in a size better
adapted to its offering, which is more productive while creating greater
value for its image.
In 2005, Donna Karan improved its profit from recurring operations,
confirming the relevance of its new strategy and the quality of the orga-
nizational work initiated by its teams since it joined the LVMH group.
Celine expanded its retail network, particularly with the opening of a
boutique in Florence and a second flagship store in Tokyo. The brand
also expanded in Korea. It continued to enhance its leather goods lines,
primarily its best sellers Boogie and Poulbot. Ivana Omazic joined the
Celine team as Art Director.
Fendi in its Palace
The prestigious “Palazzo”, the new five-story building opened
in the center of Rome in May 2005, houses Fendi headquarters,
its fur workshops, its design and creation studios and the largest
of its 113 boutiques worldwide. The boutique offers 700 square
meters of space, and the
stunning décor highlights
the splendors of the Eternal
City, the cradle of the brand.
This building is both a symbol
of renewal and an important
step in accelerating Fendi’s
growth. A second flagship
store of the same size was
opened in New York in
November.
PASSIONATE ABOUT CREATIVITY
30
Louis Vuitton enters
new territory
As required by a tradition
of perfection, Louis Vuitton
devoted more than two years to
in-house research on the design of its
first sunglasses collection. Made from
sheets of colored acetate (a cotton
derivative), Louis Vuitton sunglasses
are sculpted, and then hand polished.
The lenses are the result of a unique
combination of treatments that offer
both perfect comfort and the highest
level of UV protection. Immediately
recognizable, they are perfect
examples of the in-depth expertise
of the specialist working in
collaboration with the talent of
designer Marc Jacobs—a perfect
balance between luxury and fashion.