Leathergoods once again prove their value in LVMH first-half results
24/07/2018
Chief executive, Bernard Arnault, described the results as “excellent”, attesting to “the strong desirability” of the group’s brands and the effectiveness of its business strategy. He said the growth was “even more remarkable given our unfavourable currency environment”.
Mr Arnault went on to say: “The standards of quality and creativity required from our maisons, which combine modernity and tradition, are key to LVMH’s success, always driven by a long-term vision. Despite buoyant global demand, monetary and geopolitical uncertainties remain. In this context, we will stay vigilant and rely on the talent of our teams and the shared entrepreneurial passion to further increase our leadership in the world of high quality products in 2018.”
At the group’s best known leathergoods brand, Louis Vuitton, the group said there was “outstanding momentum” and a level of profit that remains “at an exceptional level”.
Leathergoods and fashion as a whole brought in €8.6 billion in revenue, an increase of 25% compared to the first six months of 2017. Profit from the leathergoods segment rose by 27% to reach almost €2.8 billion.
These figures mean leathergoods and fashion contributed 39.5% of LVMH revenue in the first six months of 2018, but that the segment was responsible for bringing in 59.7% of profits.
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