Releasing results after the close of trading on the Paris Bourse, LVMH said sales at the linchpin division — where flagship brand Louis Vuitton contributes an estimated 50 percent of group profits — came to 5.89 billion euros, or $6.57 billion, in the first six months of 2016. Sales were stable in organic terms.
The luxury conglomerate published the results the day after revealing that it was selling Donna Karan International to G-III Apparel group for $650 million. The transaction is expected to close in late 2016 or early 2017.
Group sales rose 2.2 percent in the three months ended June 30 to 8.57 billion euros, or $9.67 billion. In organic terms, the gain stood at 4 percent. Dollar figures are converted from euros at average exchange rates for the period.
The increase in organic sales compared with a rise of 3.6 percent in the first quarter of 2016 and a rise of 9 percent in the second quarter of 2015.
In the first half of the year, profit from continuing operations was flat at 2.95 billion euros, or $3.30 billion. Net profit increased 8 percent to 1.71 billion euros, or $7.12 billion, LVMH said.
“LVMH’s results for the first half of 2016 reflect, more than ever, the strength of our business model, which allows us to continue to grow even during an unstable geopolitical environment and economic and monetary uncertainties,” Bernard Arnault, chairman and chief executive officer of LVMH, said.
Hermès International last week reported a 6.2 percent rise in second-quarter revenues, while Burberry reported earlier this month that retail sales in its fiscal first quarter, ended June 30, were flat on an underlying basis and 4 percent higher than the corresponding three-month period last year.
Kering is scheduled to publish its quarterly revenues on July 28.