profits

LVMH Profits Slip

LVHM released their most recent numbers on Monday, a little ahead of schedule, showing that first-half net profit for the luxury good retailer fell 23 percent. LVMH products span a wide range in the luxury market and different groups within the company have had differing results. Watches and jewelry were particularly hard hit reporting that profit from recurring operations fell 73 percent. Better but still slumping was the wine and spirits division with a 41 percent slip. Fashion and leather goods were a bright spot with a seven percent increase in profit from recurring operations.

LVMH posted a net profit of 687 million euros in the six months through June, which is down from 891 million euros a year earlier. As you might expect the economy has been cited as a reason for the decline but the company also said that heavy destocking by its third-party distributors in the wine and spirits and jewelry and watches businesses played a role in the decline.

The company predicts that it will continue to gain market share even in a shrinking market. Businessweek has a quote from Bernard Arnault, chairman and CEO of LVMH, shown at right who said that the results were "particularly remarkable given the global economic crisis" and that LVMH is approaching the second half of the year "with confidence."

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Tags: bernard arnault, BernardArnault, lvmh, profits, stocks

Burberry Revenues Soar 26%

by Jared Paul Stern (RSS feed) —

Filed under: Apparel

Brit fashion brand Burberry has announced that first-quarter revenues have risen by 26 per cent, continuing the upswing we reported on earlier this year. The growth is due to increased business in emerging markets and strong performance in North America, the Times of London reports. The uncertain economy has proved challenging to some luxury brands.

The company, founded in 1856, recently opened new stores have in Cannes, Budapest, Italy, Korea and Spain, and has launched a cool new ad campaign. "Our brand momentum is strong, driven by product innovation and a focused management team," Burberry chief executive Angela Ahrendts told the paper. "This momentum, together with the diversity and balance we have across products, channels and regions, underpins our confidence for the future."

Gallery: The World of Burberry