The LVMH group reported revenue growth of 3% year-on-year to $ 18.9 billion (€ 14 billion) for the first half of 2014, while the group's revenue decreased 4% to $ 2 billion (€ 1.51 billion) , reports Rapaport. Sales in comparable stores of the LVMH group showed an increase of 5%.
The retailer observed the high stability of sales of luxury goods in Europe and continued growth in Asia and the US.
Sales of jewelry and watchmaking divisions of LVMH declined by 1% year-on-year to $ 1.7 billion (€ 1.266 billion), while sales in comparable stores grew by 3%. Operating profit in the jewelry sector fell sharply by 31% to $ 144 million (€ 107 million).
The company announced that economic uncertainty forced multibrand retailers to be cautious about replenishing stocks. Sales results in own boutiques belonging to LVMH brands were very good.
Bulgari brand won from positive dynamics in the jewelry market; brand TAG Heuer focused on the development of its legendary watch lines. The decrease in profit is due to the negative effect of exchange rate differences.
LVMH CEO Bernard Arnault said: "The results of the first half of the year demonstrate the sustainability of LVMH and the strength of its brands, as well as the group's ability to respond to changes in the economic environment and financial uncertainty."