LVMH results in the first half of 2011 beat expectations
World’s largest luxury group, LVMH is the latest maker of luxury goods to beat first-half forecasts, providing further evidence that the luxury sector was shielded from global economic concerns
LVMH, which owns leading luxury brand LOUIS VUITTON, posted a 13% rise in revenue to 10.292 billion euros ($14.89 billion) and a 22% increase in profit from recurring operations to 2.22 billion in the six months ended June 30. Organic revenue growth was 15%. All business groups contributed to this performance, which is even more remarkable coming on top of the strong growth in the first half of 2010. The Group continued its sustained growth in the U.S., Europe and Asia.
Profit from recurring operations for the first half of 2011 rose to 2 223 million euros, an increase of 22% compared to the same period in 2010, which had itself shown strong growth. Current operating margin reached 22%, an improvement on the first half of 2010. Group share of net profit increased to 1 310 million euros, an increase of 25%.
Bernard Arnault, Chairman and CEO of LVMH, commented: "LVMH’s excellent performance in the first half, once again, demonstrates the exceptional appeal of our brands, the attraction of our high quality artisanal products and the pertinence of our strategy. The first half was marked by the agreement with the Bulgari family to strengthen the long-term growth of the famous Italian Maison. This alliance will bring significant advantages both to the Bulgari Maison and to LVMH. We approach the second half of the year with confidence and are relying upon the creativity and quality of our products as well as the effectiveness of our teams to pursue further market share gains in our historical markets as well as in high potential emerging markets."