Louis Vuitton 2006 Annual Report Download - page 33

FASHION & LEATHER GOODS LVM H 2 0 0 6 29
For over 150 years, time has been the
leading strategic partner of Louis Vuitton.
Time has allowed us to build a unique
creative heritage which, once again
this year, with Damier Azur or the various
reinterpretations of Monogram,
has demonstrated that it is endowed
with inexhaustible resources for renewal
and modernity. Time has made it possible
to build the world's leading network
of stores. By combining tradition
and the cutting-edge spirit that make
up our genetic code, our Company
has always been able to anticipate
the desires and changing needs
of our different customers and has
achieved unparalleled global success.
With new exciting challenges and strong
potential for growth in our products
and regions, the next few years will
be used to enhance this long-term
growth model and strengthen our leader-
ship in luxury brands.
The other brands in our business group
continue to make progress, according
to their own plan and specific business
model. The expansion of Fendi - the first
remarkable success story - the significant
progress made in 2006 and the clear
potential identified are all elements that
confirm a strong medium-term outlook.
Yves
Carcelle
President
of the Fashion and Leather Goods
Business Group
Strategy and Objectives
LOUIS VUITTON STRENGTHENS ITS LEADERSHIP
Louis Vuitton continued to post double-digit
organic revenue growth. In all regions of the
world - Europe, Asia and America - the brand's
success was driven by strong demand from local
customers. Particularly strong performance was
achieved in Western and Central Europe and
in Asian countries like China and South Korea.
In a difficult monetary context that decreased
the purchasing power of Japanese travelers (a
weak yen all year), the changes in tourism-based
revenue reflected the growing customer base
from Mainland China, Eastern Europe and the
Middle East.
Louis Vuitton expanded its retail network signi-
ficantly, completing several exceptional reno-
vation projects and ended the year with a net
23 new stores, raising its number of stores
throughout the world to 368 as of December
31, 2006. The inauguration of the Maison Louis
Vuitton in Taipei and the Macau Wynn store, as
well as the first stores opened in Ukraine (Kiev),
Hungary (Budapest) and Norway (Oslo) were
highlights of 2006.
ICONS AND NEW CREATIONS - EXCEPTIONAL
VITALITY
In terms of product development, 2006 was a
year of exceptional achievements in the innova-
tion and enhancement of the iconic products
of Louis Vuitton. This was illustrated by the
success of the new leather lines of Suede, Mono-
gram Perforé, Mini Lin, Monogram Groom and
Monogram Miroir, and the new colors of the
Monogram Denim line. The outstanding perfor-
mance of the historic Damier line and the remar-
kable reception of its new model Damier Azur
were particularly noteworthy. Louis Vuitton conti-
nued to expand its watch and jewelry lines, while
the ready-to-wear, footwear and sunglass collec-
tions also performed extremely well.
Louis Vuitton continued to focus on its promo-
tional efforts and the image of its brand world-
wide. In addition to the expansion of its media
presence through two high-impact campaigns,
Louis Vuitton, Donna Karan, Fendi, Loewe, Celine, Kenzo, Marc
Jacobs, Givenchy, Thomas Pink, Pucci, Berluti, Rossimoda and
Stefanobi form the Fashion and Leather Goods business group.
This exceptional group of brands from both sides of the
Atlantic has 954 stores throughout the world. While it respects
the individual identity and the creative positioning of its
brands, LVMH supports their growth by offering shared
resources. The business of Eluxury.com in the United States is
also consolidated within the Fashion and Leather Goods
business group.
“A unique
creative heritage
with inexhaustible
sources of renewal
and modernity.”