LVMH Moet Hennessy Louis Vuitton has reported a decline in sales for the first half, driven by weaker numbers at its fashion and wine segments.
The luxury group’s revenue fell 4 per cent to EUR39.8 billion (US$46.7 billion) for the six-month period on a reported basis. On an organic basis, sales were down 3 per cent, including a 3 per cent decrease in the first quarter and a 4 per cent reduction in the second quarter.
The decline was led by an 8 per cent drop in both the fashion and leather goods and wine and spirits divisions.
The group said lower fashion revenues stemmed from strong growth last year, which was boosted by higher tourist spending in Japan due to the weaker yen. Meanwhile, weaker wine sales were largely due to the impact of trade tensions weighing on the key markets of the US and China.
Perfumes and cosmetics and watches and jewellery both saw a 1 per cent decline, while the selective retailing segment was flat amid continued growth at Sephora and the streamlining of operations at DFS.
On the bottom line, profit from recurring operations slid 15 per cent to EUR9 billion, and net profit was down 22 per cent to EUR5.6 billion.
The group said it remains confident in the ongoing uncertain geopolitical and economic environment and will continue to focus on enhancing the desirability of its brands.
