LVMH Profits Still Rising

by Deidre Woollard (RSS feed)
Jul 30th 2008 at 11:02AM

Amid rather dim profits in the luxury sector, LVMH, the biggest luxury-goods maker, has remained as shining star. The brand behind Louis Vuitton, Moet and others has reported first-half profit growth hat beat analysts' estimates. Their net income climbed seven percent to 891 million euros from 834 million euros a year earlier.

One reason for LVMH's good news is the fact that many Asian shoppers have a particular affinity for Vuitton-branded handbags, fashions and leather goods. Recent hot bags Marc Jacobs and U.S. artist Richard Price (shown in the gallery below) contributed to the sales. Heavy spending cities such as Hong Kong and Macau are particularly valuable for LVMH brands.

Despite these numbers, LVMH shares have dropped 18 percent this year, driven by concern that the luxury goods market overall is falling. Also the weak dollar and yen are part of the worry, together the U.S. and Japan account for about a third of LVMH's revenue.

Gallery: The Prince and His Louis