LVMH posts strong sales despite uncertain world economy
French luxury goods giant LVMH posted larger than expected sales growth for the third quarter on Tuesday due to strong revenue from signature brand Louis Vuitton and despite an uncertain global economy.
In the July-September period, sales jumped 17.6 percent from the equivalent period last year to 6.01 billion euros and nine-month sales increased 15 percent to 16.3 billion euros, the company said in a statement.
Analysts surveyed by Dow Jones Newswires had forecast nine-month accumulated sales of 16.1 billion euros.
Organic growth, or sales from existing businesses, in the third quarter also exceeded expectations with a 15 percent increase despite an uncertain global economic climate. In 2010, a year of record profits, organic growth was 14 percent.
The LVMH name owns the brands of Louis Vuitton, Givenchy, Moet & Chandon and Dom Perignon champagnes and Sephora perfume stores.
In its statement, LVMH said that sales at luxury luggage brand Louis Vuitton, which generates about sixty percent of the group's profit, enjoyed double digit growth in the third quarter.
In July, the company posted net half-year profit of 1.3 billion euros ($1.9 billion), a 25-percent jump from the same period last year.
© 2011 AFP