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Family business roundup: Good Q2 for Estee Lauder; LVMH, Paccar, Ferragamo and Luxottica post excellent 2012 results

Family businesses in Europe and the US have been reflecting on 2012 – with encouraging results reported by Luxottica, Ferragamo, LVMH and Paccar. Meanwhile, Estee Lauder posted strong sales for its second quarter.

Family businesses in Europe and the US have been reflecting on 2012 – with encouraging results reported by Luxottica, Ferragamo, LVMH and Paccar. Meanwhile, Estee Lauder posted strong sales for its second quarter.

Estee Lauder Companies
On 5 February, Estee Lauder Companies, controlled by the eponymous family, reported net sales of $2.93 billion (€2.17 billion) for its second quarter ended 31 December 2012 – a 7% increase compared with $2.74 billion in the same period in 2011.

The New York-based beauty company’s greatest profits and percentage increases were in skincare products (up 14% from the prior-year quarter), and make-up (up 9%).

In a statement, Estee Lauder said: “The company benefited from the strength in prestige beauty in North America and China. While overall the company’s business is performing well, certain southern European countries and Korea continue to face weakness due to economic uncertainties.”

Paccar
Meanwhile, in Bellevue, Washington, truck-maker Paccar reported record revenues for 2012 and its 74th consecutive year of net profit.

“Paccar's annual revenues of $17.05 billion were the highest in company history and the $1.11 billion of net income was the fourth best in our history," said fourth-generation family member Mark Pigott, the company’s chairman and chief executive.

Paccar partly attributed its strong performance to upping its Russian exports by 80% since 2011.

LVMH
Across the Atlantic, French luxury conglomerate LVMH had another good year: it recorded revenues of €28.1 billion in 2012 - an increase of 19% compared to 2011. It also posted a 12% rise in revenues in the fourth quarter, compared to the same period in 2011.

Family member Bernard Arnault, chairman and chief executive of LVMH, said 2012 was “another remarkable year for LVMH”, especially in the context of the economic slowdown in Europe.

LVMH’s subsidiary company Louis Vuitton performed particularly well – once again it recorded double-digit revenue growth during the year.

Ferragamo
Florence-based Ferragamo also reported considerable growth in 2012. On 31 January the iconic fashion house posted a preliminary consolidated revenue figure of €1.15 billion – an increase of 17% on 2011.

Run by the eponymous family, Ferragamo attributed its success to “focusing on top quality products and ‘made in Italy’ values, meeting the expectations and demand of global customers”.

The luxury brand’s top market for revenue was Asia-Pacific. Turnover for the region topped €420 million and represented 37% of the company’s overall revenue.

Luxottica
Moving to Milan, fashion, luxury and sports eyewear group Luxottica also posted good results in fiscal 2012, achieving its best ever net sales figures.

On 29 January, the company said net sales were up 13.9% from 2011, at a total income of €7.08 billion. Luxottica’s results for the fourth quarter consolidated the company’s growth trend, registering an 8.2% increase compared with 2011’s last quarter.

Andrea Guerra, Luxottica’s chief executive, said he was hoping for an equally strong performance this year. “The initial results for 2013, and for North America in particular, continue to present strong growth prospects.”

Luxottica is the world's largest eyewear group; 70% of it remains in the control of the Del Vecchio family.

Swatch Group
Finally, the Hayek family’s Swatch group confirmed gross sales of CHF8.1 billion (€6.6 billion) in 2012 – an increase of 14% on the previous year – on 1 February. 

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