In the first half of the year, the global luxury goods manufacturer LVMH Moet Hennessy Louis Vuitton SA recorded a decrease in net profit by 14% and revenue by 1% amid continued uncertainty in global markets, Interfax writes.
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According to information from the company's press release, net profit in January-June amounted to 7.27 billion euros compared to 8.48 billion euros for the same period last year. Profit from continuing operations fell 8% to 10.65 billion euros, while revenue fell to 41.68 billion euros from 42.24 billion euros. Organic growth of the indicator (excluding changes in exchange rates and purchases/sales of businesses) amounted to 2%.
Previously, analysts predicted revenue at 42.22 billion euros and net profit at 7.45 billion euros. In LVMH's largest segment, fashion and leather goods, sales fell 2% to 20.77 billion euros. Meanwhile, revenue from chain retailers (Sephora, DFS and Le Bon Marche) increased by 3% to 8.63 billion euros.
The report also notes that sales of alcoholic beverages fell by 12%, to 2.81 billion euros, watches and jewelry – by 5%, to 5.15 billion euros. Sales of perfumes and cosmetics increased by 3% to 4.14 billion euros.
LVMH shares fell 0.1% on Tuesday, with earnings released after market close. The company's capitalization since the beginning of this year has decreased by 5.7%, to 345.5 billion euros.
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