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LVMH earnings grow by 28 percent

Source : AP
Last Updated: Thu, Jul 26, 2012 19:00 hrs

LVMH Moet Hennessy Louis Vuitton, the luxury goods empire based in Paris, on Thursday reported that first-half net profit rose 28 percent thanks to its Louis Vuitton and Bulgari brands and on growth in Asia and the United States.

The maker of Hennessy cognac, the iconic Baguette bag by Fendi and perfumes like J'Adore posted a net profit of €1.68 billion ($2 billion), compared with €1.3 billion a year earlier.

Revenue rose 26 percent to €13 billion from €10 billion.

LVMH said the performance reflected double-digit revenue growth at Louis Vuitton, the success of the Christian Dior fashion house and the integration of the Bulgari jewelry maker, which was key to an 87 percent boost in profits for watches and jewelry.

Demand for both wines and spirits was also strong, increasing by 23 percent to €1.76 billion. Fashion and leather goods remained the main revenue drivers, with Louis Vuitton driving a 17 percent revenue increase to €4.7 billion.

LVMH CEO Bernard Arnault credited initiatives including targeted expansion of its brands for the "excellent performance" in the first half.

"We approach the second half of the year with confidence," Arnault said in a statement.

LVMH said it expects to continue to gain market share despite the uncertain economic environment in Europe on the strength of new product launches, targeted geographic expansion and cost management.



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