PARIS – Consumers are still lapping up luxury.
Signaling continued momentum for the high-flying sector, LVMH Moet Hennessy Louis Vuitton beat forecasts and today reported a 10.5 percent rise in second-quarter sales to 3.413 billion euros, lead by strong demand for monogram handbags, champagne and high-end watches.
The world’s largest luxury group reported revenue growth across all business units and geographic regions, bolstering its confidence of achieving “very significant” growth in profits for the full year.
Analysts cheered the results and predicted a strong showing in top-line growth from other luxury firms, with Hermes, Bulgari, PPR and Tod’s all due to report first-half sales this week.
Goldman Sachs analyst Jacques-Franck Dossin was heartened that LVMH cited rapid development in the U.S. and said in a research note that its results offered “reassuring data point for the sector, and (we) continue to believe that concerns over a slowdown in luxury goods are overdone.”
For complete coverage, see tomorrow’s issue of WWD.