LVMH leather business doing well

Franca
Published:  28 July, 2013

LVMH Moët Hennessy Louis Vuitton, the world's leading luxury products group, recorded revenue of €13.7 billion in the first half 2013, an increase of 6%. Organic revenue growth was 8% compared to the same period in 2012, which itself saw strong growth. 

The Group continued to experience good momentum in the US and Asia, and continues to grow in Europe in a more difficult economic environment. With organic growth of 9%, the second quarter showed some acceleration compared to the first quarter.

The fashion and leather goods business group recorded revenue growth of 5% in the first half of 2013. Profit from recurring operations was at a comparable level to that achieved in first half of 2012. These results demonstrate the success of both the very qualitative development of Louis Vuitton and the strategy to strengthen the production of other brands in the group such as Fendi and Céline as well as the quality of their distribution. Louis Vuitton continues to develop well thanks to its creativity and its excellent distribution network. Leather lines have progressed strongly say the company. The opening of two new stores in Venice and Munich took place in the first six months of the year. Fendi has developed its brand, notably in leather. Céline recorded steady growth and accelerated the pace of expansion and renovation of its store network. Other brands will continue consolidating their positions so as to successfully tackle the next phases of their development.

Overall profit from recurring operations for the first half of 2013 rose to €2 712 million, an increase of 2% compared to the same period in 2012. This performance compares to the first half of 2012, which had shown very strong growth. Current operating margin reached 20%. Group share of net profit rose to €1 577 million.

Bernard Arnault, Chairman and CEO of LVMH, commented: "The performance of LVMH in the first half, once again, demonstrates the exceptional appeal of our brands, the attraction of our high quality artisanal products and the relevance of our strategy. Innovation, extreme quality, strong distribution and savoir-faire in all of our businesses reinforce our stores. It is with confidence that we approach the second half of the year and rely on the creativity and quality of our products, as well as the effectiveness of our teams, to pursue further market share gains in our traditional markets as well as in high potential emerging territories."

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