LVMH’S WATCHES & JEWELRY BUSINESS GROUP OPERATING MARGIN UP OVER 10%
Tacy, Israel
10 September 2006
Luxury products group LVMH Moët Hennessy Louis Vuitton recorded a 19 percent increase in profit from recurring operations during the first half of 2006 and a 35 percent increase in operating profit. Each of the business groups recorded double-digit growth in profit from recurring operations, a performance which is even more noteworthy in view of the strong growth in the first half of 2005
There was strong recovery in the Watches & Jewelry business group, whose recurring operating margin has exceeded 10 percent for the first time. The profit from recurring operations in the Watches & Jewelry business group was US$47.3 million in the first half of 2006, compared to US$17.9 million in the first half a year earlier.
“Our performance during the first half of the year once again demonstrates the exceptional appeal of our brands as well as the coherence and effectiveness of our strategy. The Group again recorded double-digit growth in its results and continued to improve its profitability. Revenue growth over the summer has continued the trend we saw at the beginning of the year. Numerous product launches alongside growth of our core brands, both in our traditional markets and in the emerging countries, should allow LVMH to continue its progress in the second half of the year in a well oriented economic environment. All these elements enable us to confirm our objective of a very significant increase in results for 2006,†says Bernard Arnault, Chairman and Chief Executive Officer of LVMH.
