LVMH's Profit Rises 24% in First Half
July 26 2017 - 12:54PM
Dow Jones News
By Nick Kostov and Matthew Dalton
PARIS -- French luxury conglomerate LVMH Moët Hennessy Louis
Vuitton Wednesday said net profit in the first half of the year
jumped 24%, fueled by strong sales across its portfolio of dozens
of brands.
LVMH's net profit for the half was EUR2.12 billion ($2.47
billion). Revenue for the period rose 15%. Handbag maker Louis
Vuitton, LVMH's flagship brand, led the way, posting strong sales
growth across the brand's product lines, the company said.
The conglomerate's sales received a bump from consolidating the
operations of Rimowa, the German high-end luggage maker that LVMH
took an 80% stake in this year.
LVMH, the world's largest luxury goods company, has ridden the
wave of a rebound in the global luxury market after two off years
marred by terror attacks in Europe and a pullback by Chinese
shoppers. Tourism has rebounded as terror fears have waned, fueling
high-end shopping sprees around the world. China's wealthy
consumers are opening their wallets again.
"LVMH has enjoyed an excellent first half, to which all our
businesses contributed," said Chief Executive Bernard Arnault.
"In an environment that remains uncertain, we approach the
second half of the year with caution," he added.
Sales at LVMH's brands, which include Hennessy Cognac, fashion
house Fendi and watchmaker TAG Heuer, have proved resilient to the
downturn. This year, LVMH's revenue growth is outpacing the
rebound.
Organic revenue growth, which strips out the effects of the
currency volatility, rose 12% for the half.
Bernard Arnault, the billionaire whose family controls LVMH,
used last quarter to execute one of his biggest transactions in
years, paying EUR12 billion to unite his fashion house Christian
Dior with LVMH. The transaction places Dior, which Mr. Arnault also
controlled for years through a separate company, in LVMH's
portfolio.
Write to Nick Kostov at Nick.Kostov@wsj.com and Matthew Dalton
at Matthew.Dalton@wsj.com
(END) Dow Jones Newswires
July 26, 2017 12:39 ET (16:39 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Lvmh Moet Hennessy Louis... (EU:MC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Lvmh Moet Hennessy Louis... (EU:MC)
Historical Stock Chart
From Apr 2023 to Apr 2024