PARIS — LVMH Moët Hennessy Louis Vuitton maintained strong momentum in the second quarter, though it reiterated that it remained cautious about prospects for the second half as is starts to face tougher comparisons.
The parent of brands including Louis Vuitton, Fendi, Sephora and Bulgari said revenues, including for the first-time German luggage-maker Rimowa, rose 15 percent in the three months to June 30 to 9.83 billion euros. Organic growth was 12 percent, above a market consensus forecast of 10 percent growth.
Net profit in the first half jumped 24 percent to 2.12 billion euros, while profit from recurring operations rose 23 percent to 3.65 billion euros. The group said all geographic areas continued to progress well.
Louis Vuitton last week launched its own e-commerce site in China in a bid to capture the business of digitally savvy local consumers.
“The increasing digitalization of our activities…reinforces the quality of the experience we bring to our customers,” Bernard Arnault, chairman and chief executive officer of LVMH, said in a statement published after the market close on Wednesday.
“In an environment that remains uncertain, we approach the second half of the year with caution. We will remain vigilant and rely on the entrepreneurial spirit and talent of our teams to further increase our leadership in the world of high quality products in 2017,” he added.
Sales in the group’s key fashion and leather goods division advanced 13 percent in organic terms to 3.49 billion euros in the second quarter, broadly in line with analysts’ estimates.
This compared with 15 percent organic revenue growth in the first quarter of this year and with a 1 percent increase in the second quarter of 2016, when activity was affected by the impact of the terrorist attacks in Paris.
The watches and jewelry division recorded organic revenue growth of 14 percent in the second quarter, while perfumes and cosmetics posted 13 percent growth. Selective retailing was up 12 percent, and the wines and spirits business group reported revenue growth of 6 percent.
Although the luxury conglomerate posted record annual results in 2016, Arnault has warned repeatedly since then that the luxury sector could be headed for its biggest correction since the 2008 collapse of Lehman Brothers.
Shares in LVMH closed down 0.4 percent at 218 euros on the Paris Bourse on Wednesday before the results were released. The positive figures bolster the case for a recovery in the luxury sector.
Burberry said retail revenue rose 13 percent in the three months to June 30, up 3 percent at constant exchange rates, while Hermès International reported sales rose 8 percent at constant exchange rates during the period. Kering is scheduled to publish second-quarter results after the market close on Thursday.