PARIS — LVMH Moët Hennessy Louis Vuitton on Monday reiterated its goal for “tangible” full-year operating profit growth as chairman Bernard Arnault’s firm reported second-quarter sales advanced 9 percent to 3.09 billion euros, or $3.89 billion at average exchange rates.
Gains were strong across all divisions and geographical zones, led by double-digit gains at the French luxury conglomerate’s Louis Vuitton brand and robust sales in the U.S. and Asia.
Sales in Japan and Europe showed resilience, driven by Vuitton sales, finance director Jean-Jacques Guiony said during a conference call with analysts and reporters.
“Japan and Europe are significantly better, and the United States and Asia are stronger,” Guiony said.
Separately on Monday, Christian Dior SA, parent of LVMH and the Christian Dior fashion house, reported second-quarter sales largely in line with the luxury group.
Christian Dior said sales of its fashions and leather goods increased 12 percent to 154 million euros, or $194.1 million, led by “particularly strong” sales in Asia and the U.S.
The LVMH results, which come against the backdrop of terrorism and economic uncertainty in Europe, indicate that the appetite for luxury remains strong. LVMH is scheduled to report first-half earnings Sept. 7.
Sales in the half grew 10 percent to 6.17 billion euros, or $7.78 billion, slightly ahead of analysts’ expectations. LVMH reported the figures after the bell at the Paris Bourse, where shares finished trading up 0.7 percent to close at 68.70 euros, or $86.58.
Louis Vuitton, the group’s cash cow was propelled by product launches such as the Denim and Antigua bag lines. The brand also profited from “strong” growth in its watches, jewelry and sunglasses, relatively recent categories for the brand.
Guiony said Vuitton posted “strong” single-digit growth in the U.S., with sales building momentum in May and June as products such as the multipocket Manhattan bags reached stores.
Among the group’s other fashion and leather goods brands, Celine, Marc Jacobs, Pucci and Berluti all posted double-digit sales increases, LVMH said.
Fendi, which recently re-signed star designer Karl Lagerfeld and celebrated its new so-called palazzo store in Rome, is building momentum, Guiony said.
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LVMH said Donna Karan had “achieved new momentum,” especially with sales in the U.S. of its DKNY brand.
Total sales of fashion and leather goods in the half grew 8 percent to 2.19 billion euros, or $2.76 billion.
Perfume and cosmetics sales rose 7 percent in the half to 1.03 billion euros, or $1.3 billion, led by continued growth at Parfums Christian Dior and double-digit gains at Guerlain. BeneFit and Fresh made “market share gains,” LVMH said.
Despite a slowdown in Europe, sales gained 12 percent in the watches and jewelry division to 260 million euros, or $327.7 million, with double-digit gains at Tag Heuer and “excellent” sales at Chaumet and Zenith.
The selective retailing arm, including DFS and Sephora, gained 12 percent to 1.68 billion euros, or $2.12 billion, as tourist flows remained hearty. LVMH said sales at Sephora in the U.S. continued to show “double-digit comparable-store growth.”
Across geographic zones, sales in the half rose 14 percent in dollar terms in the U.S.; 11 percent in yen in Japan; 22 percent in euros in Asia and 7 percent in euros in Europe, which is still beset by weak consumer sentiment.