LVMH reports first half decline in profits, with revenue growing only 1 percent
World’s leading luxury group, LVMH, the owner of Louis Vuitton and Christian Dior reports a decline in net profit to 1.58 billion euros ($2.09 billion) in the first half 2013, down from 1.68 billion euros a year earlier. Second-quarter organic revenue advanced 9 per cent, more than the first-quarter’s 7 per cent gain.
LVMH’s core leather and fashion business saw sales stagnate while profit from watches and jewellery slumped. Revenue from fashion and leather, including the Fendi and Celine brands, rose only 1 percent in the period. The watches and jewellery division, which includes Bulgari and TAG Heuer, posted falling sales and profits in the first half, which LVMH blamed on lower demand from watch retailers and store closures.
LVMH’s first-half profit from recurring operations climbed 2 per cent to €2.71 billion, the Paris-based company said yesterday. First-half sales advanced 5.6 percent to €13.7 billion, or 8 per cent excluding currency shifts and acquisitions.“It is with confidence that we approach the second half of the year,” chairman and chief executive Bernard Arnault said in the statement.