LVMH Sees Strong Gains Overall But Weakness in Wine & Spirits

Posted by: Charles DuBow on July 29

When the going gets tough, the tough drink cheaper booze. LVMH Moet Hennessy Louis Vuitton (LVMH) announced Tuesday that its first-half profit growth slowed due to weaker demand for premium spirits and wines. Nevertheless, while revenue for that group fell 2% year over year, revenue for its other major operating groups—Fashion & Leather goods, Perfumes & Cosmetics, Watches & Jewelry and Selective Retailing—all reported strong revenue gains. Overall the company beat expectations by reporting a 7% rise in first-half current operating profit that and confirmed its full-year outlook. The Paris-based company, which is the world’s largest luxury conglomerate, made a current operating profit of €1.541 billion ($2.42 billion) in the six months to June 30, up from €1.440 billion from the same period last year.

The wine & spirits division includes some of the world’s most high-end brands such as Dom Perignon, Moet, Hennessy, Chateau d’Yquem, Krug, Veuve Clicquot, Ruinart, Belvedere and Chopin vodkas, and Glemorangie single malt whisky. LVMH also owns Fendi, Dior, Louis Vuitton, Tag Heuer and Marc Jacobs, among others.

In trading on the Paris bourse, the company’s share price fell 0.41% to €68.03.