LVHM Behind The Rise Of Asia

Not only

In July 27th, LVHM group's Mo t Hennessy Louis Vuitton released a report that its profit in the first half of this year increased by 52.8 percentage points, and that sales in July also maintained a good trend in the first six months, and revenue grew by 16.5%.

"These data illustrate everything."

As the president and chief executive of the French luxury giant,

Not only the LVHM group, but also the other European luxury brands, and the sales of Herm s International increased by 27 percentage points in the second quarter.

Burberry increased by 30.6% in the first quarter.

Even in the first half of the year, Arnault and others

LVHM benefited from the economic crisis and the rise of Asia

It is reported that Louis Vuitton has set up new studios and factories in France and Belgium, which ensure that they continue to sell two digit sales growth, and increase the income of fashion and leather products to 17.7% of total revenue.

At the same time, President Arnault also proudly claimed that the latest Cheval Blanc sold at a price of 600 euros per bottle, or about 775 dollars, was sold out in 10 minutes.

There is a great demand for high-end liquor. "

Arnault did not talk about the exact revenue or sales plan this year. However, he said: "thanks to the economic crisis, we have stopped making any predictions."

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Net income rose to 1 billion 50 million euros in the six months ended June 30th, compared with 687 million euros in the first half of last year.

Like other luxury brands, the LVHM group gained in exchange rate fluctuations, which increased by 116 million euros on the bottom line in the first half of the year.

Arnault said that the two digit organic gain was benefited from the recovery of all brands and regions in Asia, the United States and even Europe, although Europe was once considered to be a relatively stagnant economy since the 2009 economic crisis.

According to the LVHM report, its sales in Asia increased by 21% in the first half of the year, 18% in the US and 11% in Europe.

Only Japan's sales were at a negative stage, down 6%.

According to the statistics of LVMH, sales increased by 22% in the second quarter, while sales increased 11% in the first three months of this year.

According to WWD's calculation, sales in the second quarter increased by 22.1% to 4 billion 630 million euros, compared with 3 billion 790 million euros in the same period last year.

In the first half of 2010, total sales amounted to 9 billion 100 million euros, compared with 7 billion 800 million euros in the same period last year.

In terms of organic development, that is, year-on-year sales and constant exchange rate, its revenue growth is steady at 14%.

According to the product segmentation, sales of watches and jewels increased by 28% in the first half of the year, wine and spirits increased by 20.7%, boutique retail increased by 13.7, and perfume and cosmetics increased by 12.1%.

LVMH said that last year, the phenomenon of reduced reserves has ended, which has resulted in a sharp decline in revenue from alcohol and watch products.

In the first half of this year, sales of perfume and cosmetics in the United States increased by 16%, based on the local exchange rate. The star brand Christan Dior is the leader, and the new perfume of Miss Dior Ch RIE will be released in the second half of the year.

It is reported that Natalie Portman in Paris for the perfume advertising, the director is Sofia Coppola.

The growth of sales has accelerated the flow of cash, while the group is raising share repurchases, expenditures and acquisitions.

For the next topic, Arnault responded to the audience's questions, saying that LVHM was not interested in buying L`Or beauty Al, a French beauty giant. However, he said he was looking for other possible targets.

"Or I have some plans but I can't disclose them, otherwise we don't have any plans, so what else can I say?"

He shrugged his shoulders and responded with a smile.

In a survey, Evolutions Securities analyst Dennis Weber said LVMH sales and profit figures were much higher than expected, but he also warned that LVHM would not necessarily repeat its strong sales performance in the first half of the year in the second half.

Not long ago, Christian Dior SA also released its own report.

Dior's fashion sales increased by 10 percentage points to 373 million euros in the first half, and its sales in its boutiques increased by 17%.

Sidney Toledano, chief executive of Dior, said that apart from Japan, its brand has seen strong sales in other Asian countries.

In May, Dior showed its Cruise Series in Shanghai and reopened its boutique at Hang Lung Plaza. Toledano said the activity had a huge impact on the whole region.

Leather goods, women's and men's ready-made garments rank first among sales growth products, Toledano said.

During this period, the operating profit was 8 million euros.

"This reflects that although the investment in publicity and product development is very high, gross margin is still growing."

Toledano says.