LVMH First-Half Net Profit Jumps 53%, Showing Luxury's Return

27th Jul 2010 17:09

Mimosa Spencer Of DOW JONES NEWSWIRES PARIS (Dow Jones)--French luxury goods behemoth LVMH Moet Hennessy Louis Vuitton (MC.FR) Tuesday reported a 53% jump in first half net profit, heralding a strong return of high-end consumption and, in a departure from cautiousness seen in previous quarters, expressed confidence in the rest of the year. The world's largest luxury goods company, which owns Krug champagne and shoe-maker Berluti, posted net profit for the first six months of EUR1.05 billion, up from EUR687 million a year ago. Profit from recurring operations was EUR1.82 billion, up 34%, beating analyst expectations for EUR1.68 billion. Revenue for the six months to June 30 was EUR9.1 billion, up 17% from EUR7.8 billion a year earlier and ahead of analyst expectations of EUR8.85 billion. LVMH shares have climbed nearly 20% over the past six months, outpacing a 2% decline in the Paris CAC-40 index over the same period. Expectations for a firm pickup in the luxury goods industry were fueled by a strong showing from smaller peers Burberry (BRBY.LN) and Hermes International (RMS.FR) earlier this month. LVMH shares closed at EUR92.29 Tuesday. By Mimosa Spencer, Dow Jones Newswires; +33 1 40 17 1773; [email protected] (END) Dow Jones Newswires July 27, 2010 12:09 ET (16:09 GMT)