LVMH: the Latest Luxury Brand to Forge Through Tough Times
LVMH group announced healthy profits this week, despite the troubled European economy and faltering Chinese housing market. Revenues for the first half of 2012 topped 13 billion euros, up 26% compared to the first half of 2011.
According to LVMH Chairman and CEO Bernard Arnault, sales across all 60 of the conglomerate’s subsidiaries contributed to this year’s robust numbers. Most notably, newly acquired Bulgari doubled LVMH’s jewelry operations, which saw an increase of 13% in organic growth. Other luxury brands under the LVMH umbrella also pulled their own weight, including Hublot, Tag Heuer, Marc Jacobs and Louis Vuitton.
“A host of initiatives, including constant innovation, successful iconic product lines, the development of our craftsmanship and targeted expansion, reinforce our Maisons,” Arnault 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.”
Other factors contributing to the strong showing in the first half of this year include growth seen in selective retailing, like mall retailer and LVMH property Sephora, on top of brisk sales by Tag Heuer and Hublot watches.
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