French luxury giant LVMH half-year net profit drops 14%
Date
7/23/2024 12:49:22 PM
(MENAFN- AFP)
The world's largest luxury group, LVMH, said Tuesday its half-year net profit slid 14 percent amid an uncertain geopolitical and economic environment.
The drop in profit to 7.26 billion euros ($7.88 billion) was accompanied by a one-percent dip in sales to 41.68 billion euros by the group whose brands include Louis Vuitton, Dior, Celine and Moet Hennessy.
"The results for the first half of the year reflect LVMH's remarkable resilience... and the responsiveness of its teams in a climate of economic and geopolitical uncertainty," said chief executive Bernard Arnault.
The results of the luxury industry leader have been eagerly awaited after British brand Burberry and Cartier owner Richemont both reported last week sharp drops in sales in China.
Swatch Group, which also owns a number of luxury watch brands including Omega and Tissot, also reported slower spending by Chinese consumers on high-end items.
LVMH did not provide a full breakdown of sales by region, but it said sales rose in Europe, the United States and Japan.
It only noted that sales in "the rest of Asia reflected the strong growth in spending by Chinese customers in Europe and Japan."
The fashion and leather goods division, which accounts for around half of revenue, saw sales dip two percent in the first half of the year.
The only divisions to post growth were the Perfumes and Cosmetics and Selective Retailing division, which includes the Sephora cosmetics chain of stores.
Sales fell in both the Watches and Jewelry and Wines and Spirits divisions.
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