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LVMH profit grows at fastest rate since 2011 after Asia rebounds

Bloomberg Published on Thu, Jul 27, 2017 / 10:56 AM GMT+8

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(July 27): LVMH’s first-half profit grew at the fastest rate since 2011 as Japan and Europe joined a luxury industry recovery led by China, showing double-digit sales increases in the second quarter.

The world’s biggest luxury-goods company said Japan was boosted by promotional activity like staging Louis Vuitton’s latest runway show there, while Europe was helped by more favorable comparisons in France after a decline in tourism a year earlier. The Paris-based company sounded a cautious note about the second half, citing “geopolitical and economic instability.”

LVMH’s report Wednesday underlined a luxury industry recovery that began in China after a multiyear slowdown caused in part by a crackdown in corruption. The company’s shares are up about 20% since the start of the year, as investors have welcomed the improved outlook and a 6.5 billion-euro deal for LVMH to take full control of Christian Dior. In May, LVMH surpassed energy giant Total SA to become France’s most valuable company.