Global economic volatility hasn’t stopped the world’s super rich spending on French-owned luxury goods brands, boosting both LVMH and PPR half year sales.
Moët Hennessy Louis Vuitton – owner of 60 brands from champagne to fashion – posted a 12 per cent rise in organic sales growth to €13bn (£10.2bn) while profit from recurring operations jumped 20 per cent to €2.6bn (£2bn).
Gucci to Puma group PPR posted a solid rise for the first half of the year with sales up 16.7% to €6.4bn and profit from recurring operations up 20.4% to €815m.
PPR was dragged down by weaker sales at sports brand Puma but chairman and CEO François-Henri Pinault said: “The pace of growth in the Sport & Lifestyle Division picked up in the second quarter, and its profitability should be enhanced once the implementation of Puma’s transformation programme has been stepped up.”
LVMH warned that the economic environment remains “uncertain” but said it will focus on gaining market share. Champagne and wine as well as watches and jewellery from TAG Heuer and Bulgari helped boost sales.
Bernard Arnault, chairman and CEO of LVMH, said: “We approach the second half of the year with confidence and are relying upon the creativity and quality of our products as well as the effectiveness of our teams to pursue further market share gains in our historical markets as well as in high potential emerging markets.”
