TOP 10 OPERATORS 2018 6: DFS GROUP
more fashion-conscious customers. The positive performance of DFS
last year was also evident through LVMH Moët Hennessy Louis Vuitton’s 2017 results. According to the luxury conglomerate, the Selective Retailing division, which includes DFS Group, recorded organic revenue growth of +13% (+11% on a reported basis). Profit from recurring operations rose +17% compared to 2016. The aforementioned growth
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contributed to another ‘record year’ of ‘excellent performance’ for LVMH, which generated revenues of €42.6bn ($49.6bn) in 2017, an increase of +13% over the previous year. The improved performance in
the Selective Retailing division was driven by an upturn in Chinese tourist numbers to DFS’ destinations. LVMH said: “The ramp-up of
new stores in Cambodia and Venice continued, while a fourth DFS Wines & Spirits store opened its doors at Singapore’s Changi Airport, which helped add to last year’s growth.” DFS also entered into an agreement
to operate luxury boutiques at Kansai Airport in Japan, where it won a tender last year to operate seven boutiques including Rolex, Omega, Cartier and Gucci, which TRBusiness understands opened in April. An eighth Michael Kors Boutique is also
Positive signs
If performance in the first half of the year is anything to go by, DFS Group has seemingly continued where it left off at the end of 2017. LVMH Moët Hennessy Louis Vuitton’s
Selective Retailing division, which includes DFS, registered organic revenue growth of +9% (excluding the closure of its Hong Kong Airport concessions) to €6.33bn ($7.4bn) from €6.28bn ($7.3bn) in H1 2017. Profit from recurring operations
DFS celebrated the opening of its newly renovated T Galleria by DFS, Auckland in September.
believed to have started trading. Another significant highlight of
2017 was the retention of its San Francisco International Airport (SFO) concession. DFS overcame nearest rivals Travel Retail San Francisco and Dufry North America to emerge ‘as the highest ranking, responsive and responsible proposer’ for the lease.
SFO contract retention The San Francisco Airport Commission concluded the proposal evaluation process in early November and recommended DFS for the 14- year licence term. The contract was approved a month later. The agreement covers the
“Broadly, our approach in San Francisco is based on a strong commercial vision for our customers and the airport authority.”
Mark Sullivan,
Managing Director North America, DFS Group
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Cambodia and Venice all boosted DFS in the first half of the year. A positive start at the re-opened
Sydney Galleria and overall rebound of profitability also contributed. LVMH said: “DFS enjoyed an excellent
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start to the year. Performance was particularly good in Hong Kong and Macau while its recently opened Gallerias in Cambodia and Italy, made remarkable progress. “The termination of the loss-making
increased +39% to €612m from €441m during the same period in the previous year. Significant sales recoveries in Macau,
Japan and Hong Kong, where business in recent years had suffered due to the depressed Asian tourism market, and successful openings of Gallerias in
OCTOBER 2018 Contact:
janice@trbusiness.com
Hong Kong International Airport concessions at the end of 2017 contributed to the strong rebound of profitability.” Looking ahead, LVMH suggests the
ongoing renovation of DFS’ flagship stores in Canton Road (Hong Kong) and San Francisco International
H1 2018 Revenue from LVMH’s Selective Retailing Division, which includes DFS, amounted to €6.3bn.
TOP 10 OPERATORS 47
Airport, along with the enhancement of customer relations and digital marketing are key elements of its strategy. Who knows? Maybe the end of its
Hong Kong contracts was a blessing in disguise and gave it the chance to fully focus on new and existing business opportunities. Watch this space…
operation and management of 11 duty free and luxury store locations over 46,295sq ft of space, 10 in the airport’s International Terminal and one in Terminal 1. DFS Group will pay an initial
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