LVMH first half profits up 4%
The French luxury goods group, Moët Hennessy Louis Vuitton (LVMH), has posted a 4% increase in first half profits to Eur874 million.
The strong performance is unique in the luxury good sector, which has of late suffered at the hands of the weak dollar and declining tourism.
The Paris-based company’s net income, meanwhile, increased 24% to Eur265million, while organic sales growth was up 1%.
The firm’s fashion and leather goods division maintained an operating income at a level comparable to 2002, declining just 1.9% to Eur634 million. The Marc Jacobs, Pucci and Berluti brand showed double-digit growth and the Tambour watch continued to sell well. The group’s new Suhali goatskin leather line is already generating waiting lists.
LVMH’s strong growth was driven mainly by its wines and spirits division, which increased its operating income 30% to Eur39 million.
Bernard Arnauld, chairman and CEO, commented: “This first half, along with the signs of recovery observed since June, enables us to confirm our objective of tangible growth in operating income for 2003.”
