ANALYSIS_LVMH took Paris bourse by storm Friday after the world largest luxury goods group hit the 6 billion euros annual profit landmark for the first time. The 2 percent rise in profit for the full year boosted the stock by nearly 7 percent to 131 euros. LVMH was a winnerFriday, not only in terms of full-year profit, but also on the trading floor. The shares advanced as much as 6.9 percent, the sharpest intra-day gain since May 10, 2010.
The French luxury giant got an important push from its fashion and leather-goods 
divisions, which sales rose 7 percent on an organic basis in the final three months of the year. Growth accelerated from 4 percent in the first nine months of 2013, after a weaker third quarter. Sales for the year came in at 29.1 billion euros, that is it a 4 percent on the previous year. Profit reached 6.021 billion pounds, a record amount that came in 2 percent up year-on-year.
Despite the green sprouts, market remains cautious, as although the results showed improvement in the fourth quarter of 2013, the annual sales growth remained below the previous year´s.
Commenting the results, the group reminded that, in order to improve performance and turnover, LVMH has launched a more expensive range of "very high quality leather products" where it today said "profitability remains at an exceptional level."
LVMH shares hit 3-year record high in Paris
The improved performance of the unit was the "main positive" in yesterday's full-year results, Rogerio Fujimori, an analyst at Credit Suisse, said in a note.
LVMH shares gained nearly 7 percent on the positive outlook and reverted thus the last twelve months´ 7.6 percent fall due to slowing luxury-goods sales in Asia.
Profit from recurring operations climbed 2 percent to 6.02 billion euros, in line with the median of 19 analysts' estimates compiled by Bloomberg. Similarly, total 2013 revenue advanced to 29.15 billion euros. Analysts predicted 29.4 billion euros. Sales rose 8 percent on an organic basis, matching estimates.
"Despite an uncertain economic environment in Europe, LVMH is well-equipped to continue its growth momentum across all business groups in 2014," the company said.
