July 30 (Bloomberg) -- LVMH Moet Hennessy Louis Vuitton SA, the biggest luxury-goods maker, rose the most in four months in Paris trading after beating analysts' profit estimates on Asian demand for Vuitton goods and a rebound in U.S. drink sales.

First-half net income climbed 7 percent to 891 million euros ($1.4 billion) from 834 million euros a year earlier, the Paris-based company said after markets closed yesterday. That surpassed the 857 million-euro median estimate of nine analysts surveyed by Bloomberg.

Sales in Asia jumped 25 percent in local-currency terms, with growth led by China. The maker of Krug champagne gets about a third of its sales in Asia, more than rival PPR SA, the owner of Gucci. LVMH Chairman Bernard Arnault also said ``excellent'' sales in the U.S. weathered the nation's slowing economy.

``We were very strong in mature countries like the U.S. France, and the rest of Europe,'' Arnault said in a Bloomberg Television interview yesterday evening. ``We were also extremely solid in developing countries like China, Asia as a whole, South America and the Middle East.''

LVMH rose 3.41 euros, or 5 percent, to 71.44 euros today in Paris, the most since March 25. The earnings were released after the French stock market closed yesterday.

Revenue is rising between 20 percent and 30 percent in Asia outside Japan, according to Armando Branchini of Milan-based consultancy Interbrand, making LVMH less vulnerable to slowing U.S. and European economies and gains by the euro.

``The numbers were pretty solid, with wines and spirits and fashion and leather goods the two main divisions driving growth,'' John Guy, an analyst at MF Global Securities in London who advises buying the stock, said after the figures were released. ``They boosted margins at the wines and spirits in a declining market, which showed excellent execution.''

Resistant Stock

Sales gained 5 percent to 7.78 billion euros, also topping the 7.74 billion-euro median of 11 estimates.

Bags co-designed for Louis Vuitton, LVMH's top-earning brand, by designer Marc Jacobs and U.S. artist Richard Price fueled demand. Revenue growth in developing markets such as Brazil, the Middle East and China varied from 25 percent to 60 percent, Arnault said.

``The problem we have with some of the brands is to find the products and be able to deliver them,'' Arnault said in the interview. ``It's true of champagne, of Louis Vuitton. We have to build stock to be able to cope with very strong demand.''

The shares have still dropped 14 percent this year, heading for their biggest annual retreat since 2002, amid concern luxury-goods demand is slowing with the world economy. The stock has held up better than PPR, which has tumbled 38 percent.

New De Beers Store

Arnault, controlling shareholder of LVMH and France's richest man, said LVMH planned a second De Beers store in Paris this year in an ``exceptional location.'' He yesterday confirmed the company's forecast for a ``tangible increase in results this year'' and said he ``remained confident for 2008 as a whole.''

Sales of wines and spirits jumped 30 percent in Russia and 17 percent in Asia, Christophe Navarre, who heads the division, said at a presentation yesterday. Revenue was bolstered by new Dom Perignon, Moet & Chandon and Veuve Clicquot products.

U.S. drinks demand recovered in the second quarter after slipping in the first quarter, LVMH said. Arnault said that consumers have absorbed the company's price increases.

``When I go to the U.S., which I do very frequently, the ambience is morose,'' Arnault said in the interview. ``In spite of the morose situation, American buyers are looking for quality. Whether it's in our own shops or in department stores like Neiman Marcus or Saks, we have had very strong performance.''

Sales climbed 6 percent to 2.8 billion euros at the fashion and leather-goods division, LVMH's biggest. Excluding currency effects, the Louis Vuitton brand's sales rose more than 14 percent, spokesman Oliver Labesse said in a telephone interview.

Arnault said LVMH may make acquisitions as falling stock markets reduce the valuation of the company's competitors.

``We have to find interesting opportunities with a profitability that would be interesting for our investors, which is not easy,'' Arnault said. ``We will adapt to opportunities, but it will have to be a high-quality, high-luxury brand.''

To contact the reporters on this story: Ladka Bauerova in Paris at lbauerova@bloomberg.net; Sara Gay Forden in Milan at sforden@bloomberg.net

Last Updated: July 30, 2008 12:06 EDT