Profit hike for LVMH
28 July 2010French luxury goods giant LVMH on July 27 reported a 53% jump in first half net profit on the back of better-than-expected sales and predicted a sound showing in the second half. The group is a significant buyer of leather for leathergoods and footwear.
Net earnings in the January-June period came to 1.1 billion euros ($1.4 billion). Sales in first half shot up 16% to 9.1 billion euros.
At the operating level, earnings rose 33% to 1.82 billion euros.
The company, which markets high-end spirits along with leathergoods, perfume and cosmetics, said all sectors reported double-digit sales increases.
While the world's leading luxury goods group issued no forecast for the rest of the year, chief executive Bernard Arnault said the company was beginning the second half ‘with confidence.’
He said LVMH wanted to ‘continuing growing its market share in its historic areas as well as in emerging markets with solid potential.’
In the first half, all regions, apart from Japan, showed growth.
LVMH suffered a 23% fall in net earnings in the first half of 2009 when much of the world was gripped by the global financial crisis.
Source: AFP
