LVMH: leathergoods sales up 6%
Luxury-goods maker LVMH Moet Hennessy Louis Vuitton SA, has reported an increase in 7% on first half earnings, reaching EUR 891 million on sales of EUR 7.7 billion.
Sales in Asia jumped 25%, with China leading the growth. Chairman, Bernard Arnault, said that sales in the US had also been “excellent” and that the group’s performance in Europe had also been “very strong” and he said the group could look to make acquisitions in the near future.
He revealed no names, but said any company the group moved for would have to be a “high-quality, high-luxury brand”.
Analysts commenting on these results said bags co-designed for Louis Vuitton, LVMH’s top-earning brand, by designer Marc Jacobs and US artist Richard Price had gone down particularly well in the market. Mr Arnault said the company had had to keep stocks of the bags and other leathergoods higher than it had expected to cope with demand.
He admitted to being slightly surprised by how well the group’s brands had withstood the downturn in the economy in the US. He said in an interview on Bloomberg television: “When I go to the US, which I do very frequently, the ambience is morose. In spite of the morose situation, buyers are looking for quality. Whether it's in our own shops or in department stores like Neiman Marcus or Saks, we have had very strong performance.”Sales climbed 6% to EUR 2.8 billion euros at the fashion
and leathergoods division, which is the group’s biggest.
