LVMH Moet Hennessy Louis Vuitton, a leading luxury products group, announced a 31% increase in its operating profits for the first half of 2000. Profits rose to 762 million Euros, up from 581 million in the first half of last year.
The company attributes its record performance to the extraordinary success of the group's products and global economic growth. "These record results further strengthen the LVMH group's position of global luxury leadership," the company said in a press release. "Such remarkable growth demonstrates the firm rationale of our strategy based on innovation and quality."
LVMH's new watch and jewelry business group made an operating profit of 19 million Euros in the first half. The company says the first half is notable for the successful launch of new models at Chaumet, TAG Heuer and Zenith.
The company expects continued growth for the second half of 2000 and has raised its operating profit growth target by 25%. "The strength of our unrivaled collection of brands, the success of our new products, the quality of our teams of men and women, combine to give us great confidence in our pursuit of sustained growth for the group in the 18 months to come; that is why we have raised our profit growth target for 2000."
- by Julia M. Duncan