French luxury goods group LVMH Moët Hennessy Louis Vuitton, achieved an 11% increase in profit from recurring operations during the first half of 2005, exceeding the €1 billion mark for the first time to reach €1,090 million.

At constant exchange rates, the group’s profit from recurring operations increased by over 25%.

The company stated that the group share of net profit increased by 19% compared with the first half of 2004. This increase, largely attributable to improved operating profitability, would have risen to 38% without the provision relating to the closure of the Samaritaine store for safety reasons.

Fashion & Leather Goods improved profit from recurring operations by 4% despite the strong currency impact. The policy of new product launches continued with the success of new lines Monogram Cerises and Denim, which are in high demand throughout the world. The second half of 2005 will see the reopening of the brand’s flagship store on the Champs Elysées in Paris at the beginning of October.
The beginning of the year has proved promising for Fendi, particularly with the success of its new collections of leather goods and the roll out of the new store concept. Marc Jacobs and Pucci are also progressing well.