LVMH first-half profits in double digit rise

Luxury brand conglomerate LVMH Moët Hennessy Louis Vuitton said shoppers had snapped up its designer goods over the past six months, driving revenues up 13 per cent to €10.3bn (£9.1bn).

LVMH, the world’s biggest seller of designer items such as Louis Vuitton and Fendi bags, said it had seen strong demand in the first half of 2011 across the board, with European, Asian and US markets all growing fast.

Profit from continuing operations was up 22 per cent to €2.2bn while all its brands had gained markets share, it said in a release after the markets closed.

The 25 per cent gain in its net profit, to €1.3bn, beat analyst expectations for €1.25bn.

LVMH chief executive Bernard Arnault said the results showed “the pertinence of our strategy”.

Jewellery and watches sold best in the six months, delivering 27 per cent organic revenue growth and 73 per cent jump in profit, to €85m from €49m in 2010.

Perfumes and cosmetics saw lowest revenue growth, up 11 per cent, while profits in the division were flat at €181m.

“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,” Arnault said.