LVMH not affected by economic meltdown, posts impressive profit figures

As most statistics suggest, the world is still recovering from the aftermath of the global meltdown. But that doesn’t seem to be the case with French luxury mills Louis Vuitton. LVMH Moet Hennessy Louis Vuitton SA has officially declared some sparkling profit figures which the company says is far more than what they had forecasted. The luxe company has seen no sign of a slowdown in respect to the demand for luxury goods and says that its business is doing pretty well.

Their net income figures rose by 25 % percent to touch 1.31 billion Euros ($1.9 billion.) the company is touted to be the world’s largest maker of luxury goods and is said to have waiting lists for some of its leather products and plans to introduce new models of watches in the second half. The company is also staged for an expansion for it has agreed to buy Bulgari SpA in March and snapped up a stake in Hermes International (RMS) SCA to benefit from surging demand for $7,000 Birkin bags $2,700 pink gold bracelets.

Their share prices rose by 50 cents i.e. to 130.5 Euros at 9:27 a.m in Paris yesterday. The prices have picked up by 5.9 percent that led to their market net worth equal to 65.4 billion Euros. It is said to poay an interim dividend to its investors on December 2 this year. The company had earlier posted growth in watch and jewelry sales of 27 percent and this is figure sans the effect of currency swings and the impact of acquisitions.

Via: Bloomberg

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