After LVMH released its semi-annual figures, one contradictory cliché remains true: the luxury segment fares well during the crisis. The French company saw its turnover rise 13%, its profits 22%.
Huge success despite controversy
In the last semester, Louis Vuitton Moët Hennessy realised a turnover growth of 13% to 10.3 billion euro, mainly because of the flourishing watch and jewellery brands (Swatch, TAG Heuer, Dior, …) with an average growth of 27%. The group’s net profits reached 2.2 billion euro, a 22% growth.
Dior’s results probably were the biggest surprise: despite former artistic director John Galliano’s famous dismissal because of his racist rant, the brand realised a significant growth. As a study by ABN Amro showed recently: some brands are crisis resistant.
Expanding the Empire
As could be expected, figures like these fuel belief in the future and the desire to expand. Together with the company’s results, CEO Bernard Arnault announced he had bought another part of fashion group Hermès. Against the owning family’s will, his part grew from 20.2 to 21.4%. This follows the purchase of 76.1% of Bulgari shares in March, with the remaining shares probably to follow the same fate in August.