PARIS — Sales at Christian Dior Couture rose 13.4 percent to 747 million euros, or $1.02 billion at average exchange for the period, in the six months ended June 30, Christian Dior SA, the parent company of the Dior fashion house and LVMH Moët Hennessy Louis Vuitton, reported.
The French fashion house said profits from recurring operations jumped 47 percent in the second half of its fiscal year to 84 million euros, or $115.2 million.
Due to a miscalculation by WWD, the percentage changes are incorrect in the print edition of the paper dated July 28.
Sales in directly operated stores rose 19 percent at constant exchange rates compared with the same period in 2013 “thanks to the excellence of its products,” the group said.
It did not provide further details on the performance of Christian Dior, which has been ramping up its presence in North America after staging its resort show in New York City.
In addition to remodeling stores in Las Vegas, Nev.; Aspen, Colo.; Manhasset, N.Y., and Toronto, it plans to open a store in New York’s SoHo later this year, as well as boutiques in Vancouver, Houston and San Francisco.
Meanwhile, the Dior fall fashion campaign will be seen on airport screens in China, France, Italy, the U.S. and the U.K., and the brand plans to significantly increase digital banners.
Christian Dior SA as a whole posted sales of 14.8 billion euros, or $20.3 billion, a 3.2 percent year-on-year increase, during the period. This reflected a strong negative exchange rate effect, particularly on the fashion and leather goods and watches and jewelry segments.
As reported, LVMH reported a 4.3 percent dip in net profits in the first half to 1.51 billion euros, or $2.07 billion, reflecting a more modest pace for the luxury sector, beset with strong currency headwinds and facing sluggish demand in most geographies.
Dollar figures are converted at average exchange for the periods to which they refer.
LVMH shares closed down 6.8 percent to 131.65 euros, or $181.23 at current exchange, on Friday in the wake of the results, which were published after the stock market close on Thursday. The Christian Dior SA results, incorporating the LVMH figures and those of Christian Dior Couture, were published after the market close on Friday.
The group said it benefited from “good resilience” in Europe and continued growth in the U.S. and Asia in the second half.
Highlights of the period included “the qualitative development of Louis Vuitton, where profitability remains at an exceptional level,” and strong innovation momentum at Parfums Christian Dior, it said. Sephora recorded an “excellent” performance and DFS continued to expand during the period, it added.
The Christian Dior group continued to invest in its fashion brands, which in addition to Dior include Givenchy, Céline, Loewe, Berluti, Kenzo and Fendi, among others. It also maintained investment in communication for watches and jewelry.
“Despite an uncertain European economic environment, the Christian Dior group will continue to gain market share thanks to the numerous product launches planned in the coming months and its geographic expansion in promising markets, while continuing to manage costs,” it predicted.
“Our strategy of focusing on quality across all our activities, combined with the dynamism and unparalleled creativity of our teams, will enable us to reinforce once again the group’s global leadership position in luxury goods,” it added.
For the fiscal year as a whole, the Christian Dior group recorded sales of 31 billion euros, or $42.04 billion, up 3 percent at constant exchange rates. When stripping out the effect of currency variations, revenues were up 7 percent. The group made a net profit of 1.4 billion euros, or $1.9 billion, in the fiscal year ended June 30.
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