The French luxury group LVMH, known for brands such as Louis Vuitton and Moët Hennessy, has seen its profit decline sharply. Revenue fell slightly. The company speaks of “solid results” despite the “disrupted geopolitical and economic climate”.
LVMH’s profit fell by 22 percent to 5.7 billion euros in the first six months, compared to a year earlier. Revenue fell by 4 percent to 39.8 billion euros, LVMH reports. The French group has been suffering from economic uncertainty and declining sales in the Chinese market, which is important to the company, for some time.
The listed company, led by billionaire Bernard Arnault, one of the richest people in the world, is considered an important indicator for the luxury sector. Arnault says that LVMH is starting the second quarter with “great vigilance”.
In the second quarter, champagne sales went better, but demand for cognac remains weak.
Besides the bag brand Louis Vuitton and champagne brand Moët Hennessy, LVMH is also the parent company of fashion house Christian Dior, jeweler Tiffany, Hennessy cognac and perfume brands Guerlain and Givenchy, among others. The watch brands Tag Heuer, Hublot and Bulgari are also part of LVMH.