Leather rules the roost at LVHM
The Paris-based luxury group LVMH (Moët Hennessy Louis Vuitton) has posted a 10% rise in first half profits before goodwill amortisation, reaching Eur350 million ($341.5 million). Operating income exceeded analysts’ expectations, rising 19% to Eur840 million. Total group sales were Eur5.8 billion.
Reflecting the still-strained market for luxury high end goods, profits generated by the fashion and leather goods division – by far the biggest LVMH business unit – were up by a more modest 3.3% to Eur634 million. The second largest of the group’s six business units, Wines and Spirits, posted the biggest rise in profits climbing 26% to Eur270 million.
The Louis Vuitton brand, which now extends beyond its traditional product area of leather luggage and handbags to watches, sportswear and accessories was said to have performed ‘remarkably well’, with its recently opened Tokyo flagship store being particularly well received.
