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government-trade

LVMH Profit Up 30%

PARIS – Let private equity funds overspend on acquisitions. Bernard Arnault said he prefers to bank on the stars – both proven and budding – already in his LVMH Moet Hennessy Louis Vuitton luxury empire.“We have the potential...

PARIS – Let private equity funds overspend on acquisitions. Bernard Arnault said he prefers to bank on the stars – both proven and budding – already in his LVMH Moet Hennessy Louis Vuitton luxury empire.“We have the potential to double our performance on a like-for-like basis in the next five years,” he said Wednesday in reporting a 30 percent leap in 2006 net profits to 1.88 billion euros, or $2.66 billion, as LVMH revenues rose 10 percent to surpass the 15-billion euro threshold to 15.31 billion euros, or $19.23 billion. “We have an optimized portfolio. … It’s certainly not a favorable environment to make acquisitions.”Despite an unfavorable currency environment and worries about Japan, an upbeat Arnault said he was “very sanguine” about 2007, especially given the growing appetite – and thirst – for luxury worldwide.