LVMH has reported excellent results despite economic woes around the world. The French luxury house posted 12 per cent growth and a further increase in operating margin. LVMH, or Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenues of €7.8 billion
in the first half of 2008, with good performances in Asia, the United States and Europe.
Bernard Arnault, Chairman and CEO of LVMH, commented: “The first half results once again demonstrate the exceptional appeal of our brands as well as the effectiveness of our strategy, particularly remarkable given the adverse currency and economic environment seen during this period. LVMH thus proves its exceptional capacity to grow thanks to the strength of its brands, the responsiveness of its organization and the talent of its teams. Reassured by the strong momentum in the first half of the year, the Group approaches the second half with confidence. It will rely upon the creativity and quality of its products as well as the efficiency of its teams to pursue further development in its historical markets as well as in high potential emerging markets. All these elements enable us to confirm our objective of a tangible increase in results for 2008.”
Fashion and leather goods delivered organic revenue growth of 14%. Profit from recurring operations rose to €858 million. Once again delivering double-digit organic revenue growth, Louis Vuitton continues to strengthen its market position delivering profitability. The brand continues to be driven by its ability to innovate, illustrated notably by the launch of numerous timeless lines and by the creations of Marc Jacobs in conjunction with the artist Richard Prince, which enjoy a worldwide success. Fendi continued the excellent trend experienced in 2007. The other fashion brands, notably Marc Jacobs, Donna Karan, Kenzo, Pucci and Loewe have had favorable trends.
Image: Louis Vuitton logo