The owner of global luxury brand Louis Vuitton, LVMH, has today reported a 22 per cent rise in profits to €2.22 billion (£1.96 billion) for the first half of its financial year.
Sales for the group jumped 13 per cent during the first six months of 2011, with every section of the business, which has a number of stores in prime global positions, seeing double digit growth in revenue.
Watches & jewellery was the best performing segment with revenues up 27 per cent and profit from recurring operations increase by an impressive 73 per cent, with TAG Heuer the stand out brand performer with selective store openings boosting sales.
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.”
Louis Vuitton reported double digit organic growth as the strongest brand in the group’s fashion & leather segment, with overall revenues for these products growing 14 per cent and profits increasing 17 per cent.
Perfumes & cosmetics, including brands Christian Dior, Guerlain and Benefit, saw profits stagnate during the half despite sales increasing 11 per cent year-on-year, thanks to an atypical period in 2010 when revenue growth preceded marketing expense.
Arnault added: “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.”