Wealthy Shoppers Push Aside Trade Dispute Fears to Fuel LVMH
24 Luglio 2018 - 6:44PM
Dow Jones News
By Matthew Dalton
The world's well-heeled shoppers sent first-half revenue at
luxury conglomerate LVMH Moët Hennessy Louis Vuitton SE to a record
high, brushing aside worries of a trade dispute between the U.S.
and China to splurge on everything from handbags and jewelry to
fine wines.
Revenue in the first six months of the year hit EUR21.8 billion
($25.5 billion), up 10% compared with the same period a year ago,
LVMH said Tuesday. LVMH's net profit jumped 41% to EUR3
billion.
LVMH is the world's biggest luxury-goods company by sales, and
its results are seen as a bellwether for the industry. LVMH owns
leather-goods giant Louis Vuitton, couture house Christian Dior,
high-end jeweler Bulgari, cognac label Hennessy and dozens of other
brands.
The results reflect solid economic growth across major economies
that has prompted wealthier consumers world-wide to open their
wallets. The Trump administration's tax cut has sent the U.S. stock
market to record highs. Chinese growth has recovered after a weak
path in recent years. And the eurozone is recovering after years of
crisis.
Shoppers splurged even as the U.S. and China kicked off a trade
fight that has roiled stock markets and fueled fears of a global
slowdown. During the half, the two countries have imposed tariffs
on dozens of products.
LVMH Chief Executive Bernard Arnault, whose family is the
company's controlling shareholder, struck a cautious note amid the
record results.
"Despite buoyant global demand, monetary and geopolitical
uncertainties remain," Mr. Arnault said.
LVMH's fashion-and-leather-goods division, which includes Louis
Vuitton, the world's biggest luxury brand by revenue, led the way
in the half. Revenue at the division rose 25% to EUR8.6 billion,
though the increase is partly due to LVMH taking full control of
Dior last year.
Revenue at LVMH's wine and spirits division lagged behind other
divisions, slipping 1% to EUR2.3 billion. The company has been
struggling with poor harvests in the Cognac region of France,
limiting production of the liquor despite strong demand in the U.S.
and China.
Write to Matthew Dalton at Matthew.Dalton@wsj.com
(END) Dow Jones Newswires
July 24, 2018 12:29 ET (16:29 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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