Executive Summary

• LVMH Moët Hennessy Louis Vuitton increased revenues by 5.0% year over year in FY16, to €37,600 million, which was above the consensus estimate of €37,316 million. Revenues increased by 6.0% year over year on an organic basis.
• The company’s gross margin expanded by 50 basis points year over year, to 65.3%. However, the SG&A margin expanded by 30 basis points, resulting in the operating margin expanding by 10 basis points, to 18.7%. FY16 adjusted EPS increased by 11.4% and beat consensus.
• Revenues were driven by strength in the US and Europe. In terms of business segments, sales growth was driven by Perfumes & Cosmetics, Selective Retailing and Wines & Spirits.