LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, reported Thursday revenues of 7.4 billion euros ($10.1 billion), a 6 percent increase during the same period of the prior year. Its net profit increased by 2 percent to 834 million euros ($1.1 billion) for the period.
All business groups enjoyed double-digit organic revenue growth, with results particularly good in Europe, the United States, and Asia, the Paris-based company said. However, while sales are strong for all of its products throughout the world, growth in revenues and net profits were hampered by the weakness of the dollar and the yen against the Euro. Not taking currency fluctuations into account, the company’s revenue growth was 12 percent for the period.
Profit from recurring operations increased by 11 percent to 1.4 billion euros ($1.9 billion), the company said. At constant exchange rates (organic), profit from recurring operations increased by 16 percent.
“Our performance during the first half of the year once again demonstrates the exceptional appeal of our brands as well as the coherence and effectiveness of our strategy,” said Bernard Arnault, LVMH chairman and chief executive officer. “The Group recorded a further increase in its current operating margin to more than 19 percent. These results are even more remarkable given the significant negative impact of exchange rates in the first half of 2007. Numerous product launches, geographic expansion in targeted, high potential markets, and growing success with new clients should allow LVMH to continue its progress in the second half of the year in a favorable economic environment. All these elements enable us to confirm our objective of a significant increase in results for 2007.”
The Watches and Jewelry division of the company reported 17 percent increase in revenues (23 percent organic) to 390 million euros ($532.5 million).
“TAG Heuer continued to expand its higher end range of products and grew strongly in all of its markets, driven by the development of its iconic lines F1, Link, Aquaracer, and Carrera,” the company said in its report. “Zenith confirmed the success of its sports line Defy and Dior Watches confirmed that of its Christal range. Chaumet’s progress was buoyed by the strengthening of its Liens and Attrape-moi collections. De Beers progressed well in Asia and the United States.”
Revenues of its other business groups are as follows:
* Wines & Spirits, 1.3 billion euros ($1.8 billion), 8 percent reported increase (13 percent organic);
* Fashion & Leather Goods 2.6 billion euros ($3.5 billion), up 6 percent (12 percent organic);
* Perfumes & Cosmetics 1.26 euros ($1.7 billion), up 8 percent (12 percent organic);
* Selective Retailing 1.9 billion euros ($2.6 billion), up 5 percent (10 percent organic).