LVMH Beats Expectations on Second-Quarter Sales, Says Earnings Grew -- Update

--LVMH Moet Hennessy Louis Vuitton beat expectations on its second-quarter sales

--LVMH said earnings grew strongly during the first half of the year, raised interim dividend

--LVMH said growth continued to be strong in Asia, and that France returned to strong growth

 
   By Cristina Roca 
 

LVMH Moet Hennessy Louis Vuitton SE (MC.FR) beat expectations on its second-quarter sales and said that its earnings grew strongly during the first half of the year.

The world's biggest luxury-goods company said Wednesday that its first-half net profit was 3.27 billion euros ($3.65 billion), up 9% from EUR3 billion the year previous.

The owner of the Louis Vuitton and Dior brands said revenue for the first half was EUR25.08 billion, up 15% from EUR21.75 billion for the same period the prior year, and above analysts' expectations of EUR24.77 billion, according to a consensus estimate provided by FactSet.

The luxury conglomerate's organic revenue growth for the first half was 12%.

The company's key fashion and leather goods category posted 18% organic growth, outdoing a 14% consensus estimate by a landslide.

In the second quarter, revenue was up 15% on the year, growing 12% organically, LVMH said.

The company said demand was buoyant. LVMH said growth continued to be strong in Asia, and that France returned to strong growth in the second quarter.

Watches, meanwhile, continued to be more muted for LVMH, with the company's watches & jewelry division's revenue growing organically by 4% in the first half, with growth driven by jewelry.

Profit from recurring operations for the first half was up 14% at EUR5.3 billion, and operating margin stood at 21.1%, slightly lower than 21.4% last year.

LVMH declared an interim dividend of EUR2.20, up from EUR2.00 last year, and said that although it remains vigilant, it is entering the second half of the year with confidence.

Write to Cristina Roca at [e-mail]; @_cristinaroca

(END) Dow Jones Newswires

July 24, 2019 13:03 ET (17:03 GMT)

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