FRANCE: LVMH Profit Up But Hampered By Shut Store
Luxury goods group LVMH says its first-half net profit jumped 19 per cent on a recovery of the travel and tourism industry, but that the closure of its flagship La Samaritaine store prevented the company reaching its full potential.
The company reported net profit of €559 million for the six-month period, compared to €469m last year. However, without the closure, LVMH believes net profit would have jumped 38 per cent.
Bernard Arnault, chairman and chief executive officer, said: "Revenue growth during the summer has continued the strong trend we saw at the beginning of the year. A number of product launches in conjunction with the growth of our core brands in high-potential markets should allow LVMH to continue its progress in the second half of the year."
Fashion and leather goods reported a 4 per cent rise in profit from recurring operations, with an especially impressive performance from the Louis Vuitton label, which saw success with the launch of new lines Monogram Cerises and Denim.
The Fendi label has reported success with its new collections of leather goods and the roll out of the new store concept, while the Marc Jacobs and Pucci units are also progressing well.
The company has also confirmed that employees of La Samaritaine, which has been shut after it failed a safety investigation, will be offered alternative employment within the group.
LVMH Moet Hennessy Louis Vuitton is the world's leading luxury goods group.
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