LVMH Beats Expectations on Second-Quarter Sales, Says Earnings Grew -- Update
July 24 2019 - 1:18PM
Dow Jones News
--LVMH Moet Hennessy Louis Vuitton beat expectations on its
second-quarter sales
--LVMH said earnings grew strongly during the first half of the
year, raised interim dividend
--LVMH said growth continued to be strong in Asia, and that
France returned to strong growth
By Cristina Roca
LVMH Moet Hennessy Louis Vuitton SE (MC.FR) beat expectations on
its second-quarter sales and said that its earnings grew strongly
during the first half of the year.
The world's biggest luxury-goods company said Wednesday that its
first-half net profit was 3.27 billion euros ($3.65 billion), up 9%
from EUR3 billion the year previous.
The owner of the Louis Vuitton and Dior brands said revenue for
the first half was EUR25.08 billion, up 15% from EUR21.75 billion
for the same period the prior year, and above analysts'
expectations of EUR24.77 billion, according to a consensus estimate
provided by FactSet.
The luxury conglomerate's organic revenue growth for the first
half was 12%.
The company's key fashion and leather goods category posted 18%
organic growth, outdoing a 14% consensus estimate by a
landslide.
In the second quarter, revenue was up 15% on the year, growing
12% organically, LVMH said.
The company said demand was buoyant. LVMH said growth continued
to be strong in Asia, and that France returned to strong growth in
the second quarter.
Watches, meanwhile, continued to be more muted for LVMH, with
the company's watches & jewelry division's revenue growing
organically by 4% in the first half, with growth driven by
jewelry.
Profit from recurring operations for the first half was up 14%
at EUR5.3 billion, and operating margin stood at 21.1%, slightly
lower than 21.4% last year.
LVMH declared an interim dividend of EUR2.20, up from EUR2.00
last year, and said that although it remains vigilant, it is
entering the second half of the year with confidence.
Write to Cristina Roca at cristina.roca@dowjones.com;
@_cristinaroca
(END) Dow Jones Newswires
July 24, 2019 13:03 ET (17:03 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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