Leathergoods are pivotal to LVMH’s first-half performance
25/07/2014
Its wines and spirits and watches and jewellery segments recorded declines, which the group attributed to currency exchange rates and a downturn in business in China, where government austerity measures are affecting sales of high-end products such as champagne and cognac. However, despite facing similar challenges, the group’s leathergoods and fashion segment recorded first-half sales of more than €5 billion, an increase of 7% year on year.
Total profits for the six-month period were nearly €2.6 billion, and fashion and leathergoods contributed almost €1.5 billion of this. This means fashion and leathergoods accounted for around 35% of revenues, but for 57% of profits.
Commenting on the performance of its main leathergoods brands at the time of announcing the results, LVMH said its Louis Vuitton label was continuing its “strong creative momentum” with new artistic director, Nicolas Ghesquière, receiving an enthusiastic response to his first show.
For its part, Fendi benefited in the first half of 2014 on a focus on its iconic bags, for which sales progressed strongly, the group said. Céline’s growth continues to be driven by the success of its leathergoods and the rapid development of footwear, it continued. Several Céline flagship stores were opened around the world, including in London, Tokyo and Paris.
Other brands, such as Givenchy, Berluti and Kenzo, continued to strengthen their positions as well, LVMH concluded.
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