Fashion business records 14% organic growth at LVMH

The momentum at Louis Vuitton’s Fashion & Leather Goods business, driven by its exceptional creativity, was demonstrated across all its product categories. The Cruise Collection presented at the Miho Museum in Kyoto, Japan, was a great illustration of this. The launch of new models resulting from the collaboration with the artist Jeff Koons and the cult New York skatewear brand, Supreme, were the highlights of the first half, LVMH said.

Fendi continued its strong growth and enriched its leather goods lines, the company said. Loro Piana strengthened its presence in Asia with several openings. Céline, Loewe and Kenzo experienced good growth. Marc Jacobs strengthened its product offering and continued its restructuring. Other brands continued to grow. Rimowa, which joined the LVMH Group, is consolidated for the first time in the first half-year accounts.

Organic revenue growth for LVMH Group was 12 per cent compared to the same period in 2016. During the first half of the year, the Group benefited from a favourable comparison base, particularly in Asia but also in France, where activity was impacted last year by a decline in tourism.

Profit from recurring operations was €3.640 billion for the first half of 2017, an increase of 23 per cent. Operating margin reached 18.5 per cent, an increase of 1 percentage point. Group share of net profit amounted to € 2.119 billion, an increase of 24 per cent.

Commenting on the results, Bernard Arnault, chairman and CEO of LVMH, said, “LVMH has enjoyed an excellent first half, to which all our businesses contributed. In the current climate of geopolitical and economic instability, creativity and quality, the founding values of our Group, have more than ever become benchmarks for all. The increasing digitalisation of our activities furthermore reinforces the quality of the experience we bring to our customers.”

“In an environment that remains uncertain, we approach the second half of the year with caution. We will remain vigilant and rely on the entrepreneurial spirit and talent of our teams to further increase our leadership in the world of high quality products in 2017,” Arnault added. (RKS)

Fibre2Fashion News Desk – India