by Jennifer Weil

PARIS - For the first time in his tenure as L’Oreal chief executive officer, Jean-Paul Agon reviewed the company’s fully-year turnout, for 2006, and outlined its vision that continues to stretch both far and wide.

In a meeting at company headquarters in the Paris suburb of Clichy, Agon, L'Oreal's divisional managers discussed key subjects for the firm.

Among them, they said 2006 was a year of numerous firsts. L’Oreal’s sales generated from active cosmetics outpaced any other divisions’ product revenues in 2006. Also, last year marked the first time skin care (including sun care) rang up the most business of any other product category in the company. On a geographic basis, it was a banner year for emerging markets, since the “rest of the world” zone’s sales grew faster than either Western Europe or North America’s.

L’Oreal reported its net profits excluding non-recurrent items after minority interests rose 11.9 percent to 1.833 billion euros, or $2.3 billion at the average yearly exchange rate, in the period.

These came on sales that, as reported, were 15.79 billion euros, or $19.84 billion, up 8.7 percent over 2005. On a like-for-like basis, revenues gained 5.8 percent.

For 2006, the company registered earnings per share growth excluding non-recurrent items after priority interests of 14.7 percent to 2.98 euros, or $3.74 euros, making it the twenty-second consecutive year of such double-digit gains.



For complete coverage see tomorrow's issue of WWD.




LVMH Profits Surge 30% in 2006
by Miles Socha

PARIS — Let private equity funds overspend on acquisitions. Bernard Arnault said he prefers to bank on the stars, both proven and budding, already in his LVMH Moët Hennessy Louis Vuitton luxury empire.

“We have the potential to double our performance on a like-for-like basis in the next five years,” he said Wednesday in reporting a 30 percent leap in 2006 net profits to 1.88 billion euros, or $2.36 billion, as LVMH revenues rose 10 percent to surpass the 15 billion euro threshold to 15.31 billion euros, or $19.23 billion. Currency conversions were made at average exchange rates for the period.

“We have an optimized portfolio.…It’s certainly not a favorable environment to make acquisitions,” said Arnault.

Despite an unfavorable currency environment and worries about Japan, an upbeat Arnault said he was “very sanguine” about 2007, especially given the growing appetite for luxury worldwide.

Operating profits at LVMH’s watches and jewelry division skyrocketed 281 percent last year to 80 million euros, or $100.5 million, while China advanced to become the group’s fourth-largest market for wines and spirits, where Hennessy cognac already enjoys a 50 percent market share.

“We are expecting a year of sustained growth — significant growth in all likelihood,” Arnault told an audience of analysts and journalists at LVMH’s art-stuffed headquarters here, where he unveiled the results after the close of trading on the Paris Bourse.



Marc Jacobs New Store Brings Spring to London’s Mayfair
by Samantha Conti

LONDON — Marc Jacobs may well be the only man in London with a spring garden in full bloom.

The designer’s first store here opened on Mayfair’s Mount Street earlier this week, its windows crammed with tulips, roses, daffodils, daisies and hydrangeas.

“We must have bought up every flower in London, but in some cases, we needed to fake it: Hydrangeas don’t bloom in the spring, and there wasn’t one fake lilac to be found in this entire town,” said Robert Duffy, president of Marc Jacobs, during a walk-through.

The store, which spans 2,700 square feet, carries the full Marc Jacobs range, as well as a string of exclusive items: Union Jack surfboards, motorcycle helmets and beach towels, as well as T-shirts printed with designs of the iconic London taxis and a limited range of leather handbags for spring.

The shop also showcases the designer’s new bone china tableware and crystal glassware for Waterford, and is the only European store to carry the children’s collection.

The space was formerly an antiques store. During renovations, the Marc Jacobs team tore up carpeting to reveal rich, patterned parquet flooring, and uncovered a series of grand Palladian windows at the back. There are a series of working fireplaces, which Duffy said would be up and running soon, and Regency details installed by the former owners: A dark wood staircase and doors, as well as period marble mantelpieces.

The decor is similar to that of the Marc Jacobs store in Paris, with specially designed brown furniture by Christian Liaigre, plush brown carpeting, marble and wood cabinets and shelving with pearlized backdrops.



IMG Buys Art + Commerce
by Marc Karimzadeh

NEW YORK — IMG just expanded its reach in the creative field.
The sports, entertainment and media conglomerate has acquired Art + Commerce for an undisclosed sum. The New York-based agency has clients ranging from creative directors and photographers to stylists and hair and makeup people. The acquisition will fall under the IMG Fashion umbrella, which also owns such fashion enterprises as Mercedes-Benz Fashion Week and IMG Models. Art + Commerce will continue to operate under the same name.

“The addition of Art + Commerce to IMG Fashion represents a significant step in our strategy to expand our fashion businesses in different arenas,” said Chuck Bennett, IMG’s senior corporate vice president, in a statement. “Art + Commerce brings the most notable image makers, which perfectly complements our activities throughout the world.”

The agency will continue to be run by Anne Kennedy, Jim Moffat and Leslie Sweeney, who are its founding principals. Art + Commerce represents photographers such as Steven Meisel, Craig McDean, Annie Leibovitz, Inez van Lamsweerde and Vinoodh Matadin and Ellen von Unwerth; hairdressers like Orlando Pita and Guido; makeup artists such as Tom Pecheux and Gucci Westman, and stylists including Lori Goldstein, Brana Wolf, Anne Christensen and Camilla Nickerson.



For complete coverage see WWD.com.