LVMH First-Half Profit Gains 20% as Luxury-Goods Sales Increase
LVMH Moet Hennessy Louis Vuitton SA, (MC) the world’s largest maker of luxury goods, reported a 20 percent increase in first-half earnings and said it approaches the second half of the year with confidence.
Profit from recurring operations climbed to 2.66 billion euros ($3.27 billion), the Paris-based company said today in a statement. The median of six estimates compiled by Bloomberg was 2.71 billion euros. Sales rose 26 percent to 12.97 billion euros, or 12 percent excluding currency swings and acquisitions.
Hermes International SCA (RMS), in which LVMH has a stake, last week reported a 13 percent revenue increase, allaying concern that Europe’s debt crisis and slowing growth in China are taking a toll on demand for high-end goods. Global sales of luxury goods may rise 7 percent in 2012, CA Cheuvreux analyst Thomas Mesmin estimates.
“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,” LVMH Chairman and Chief Executive Officer Bernard Arnault said in the statement.
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