LVMH Moet Hennessy Louis Vuitton SA, the world’s largest luxury-goods company, reported first-half earnings that trailed estimates as the strong euro and weaker demand for premium cognac weighed on growth.
Profit from recurring operations fell 5 per cent to €2.58 billion, Paris-based LVMH said today in a statement after European markets closed. Analysts expected €2.76 billion, according to the median of 18 estimates compiled by Bloomberg.
LVMH is introducing more expensive Louis Vuitton handbags while increasing investment in its other fashion and accessories brands amid softening demand for expensive liquor and watches. Remy Cointreau SA last week reported a 15 per cent drop in quarterly sales at its Remy Martin cognac unit, hurt by China’s clampdown on lavish banqueting and gift-giving by officials.
LVMH is confident of pursing further market-share gains in its traditional markets as well as in high-potential emerging territories, Chairman and Chief Executive Officer Bernard Arnault said in the statement.
Sales advanced 3 per cent to €14 billion. Analysts predicted €14.2 billion. Excluding currency swings and acquisitions, sales climbed 5 per cent.
Bloomberg News, edited by ESM