Luxury goods group LVMH has reported its first fall in operating profit for five years - dropping by 5% to €5.7bn (£4.3bn) in 2014 - as sales of wines and spirits slowed in China.
Revenue for the year was up 6% on 2013 to €30.6bn (£23.2bn), with organic growth of 5%. However, organic revenue at the group’s fashion and leather goods division, which includes Louis Vuitton, Fendi, Celine, Givenchy, Kenzo and Berluti, grew by just 3% year on year, compared to 5% the previous year.
The group said revenues increased across all of its divisions except wines and spirits, which continued to be affected by the “destocking of distributors” in China.
LVMH chairman and chief executive Bernard Arnault said: “The 2014 results confirm the capacity for LVMH to progress despite economic and currency uncertainty. Revenue and net profit reached new record levels. In an uncertain economic environment, we can rely on the desirability of our brands and the agility of our teams to further strengthen our leadership in the world of high quality products.”