29 July 2010

LVMH Profits skyrocket!

Dior couture, design by John Galliano, A/W '10

While politicians are busy having to cut budgets, slash funding and face up to the effects of the global recession, over in Paris, luxury goods group LVMH – better known as the owners of Louis Vuitton, Givenchy, Celine, Marc Jacobs and Christian Dior, announced a 52.8% leap in first-half profits and that revenues rose 16.5%.

Yikes! This is a whopping jump when consumers had been expected to be tightening belts rather than purchasing new Loewe ones; plus president of the company, Bernard Arnault, said the figures for July had kept pace, therefore they expect the rest of the year to follow suite. Congratulations!  

Christian Dior is one area of the business that is doing particularly well, with sales and profits up in all geographic areas except Japan. The quintessentially French brand has worked hard to expand into Asia, with boutiques in locations like Shanghai.

People will cite the new-found wealth of Chinese society for this growth, but since sales are stable or increasing in all other countries, we’ll permit ourselves to suggest that ladies, whatever savings they have to make in hard times, buying fewer fabulous handbags isn’t one of them!

WWD

- Naomi Attwood


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