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RAPAPORT... LVMH reported that revenue improved 3 percent year on year to $18.9 billion (EUR 14 billion) in the first half of the year, while the luxury group's share of profit slipped 4 percent to $2 billion (EUR 1.51 billion). LVMH's same-store sales increased 5 percent. The retailer observed good sales resilience for luxury goods across Europe and continued growth in Asia and the U.S. Sales across the company's jewelry and watches division fell 1 percent year on year to $1.7 billion (EUR 1.266 billion) and same-store sales rose 3 percent. Operating profit from the jewelry sector dropped 31 percent to $144 million (EUR 107 million). The company stated that economic uncertainties continued to make multi-brand retailers prudent in their inventory replenishment. The performance in the brands’ own boutiques exhibited significant growth, according to the company. Bulgari benefited from positive momentum in jewelry. TAG Heuer focused on the development of its iconic lines. The decrease in profit from recurring operations was principally explained by a negative exchange rate effect. Bernard Arnault, the CEO of LVMH, said, “The results of the first half demonstrate LVMH’s excellent resilience, thanks to the strength of its brands and the responsiveness of its organization in a climate of economic and financial uncertainties. The first half of the year also witnessed the smooth integration of Loro Piana into the group. Following the first half’s good resilience, it is with confidence that we approach the second half of the year and rely on the creativity and quality of our products and the effectiveness of our teams, to pursue further market share gains in our traditional markets, as well as in high potential emerging territories.”
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