Louis Vuitton’s iconic monogram handbag offerings provided a solid nudge to parent company LVMH Moët Hennessy Louis Vuitton in the second quarter of 2015.
The brand helped propel LVMH to a 23 percent increase in revenues in Q2 and organic sales growth of 9 percent.
“The excellent results of the first half are witness to the efficiency of our strategy, which relies on the strength of our brands and a very entrepreneurial style of management,” said Bernard Arnault, LVMH’s chairman and CEO, in a release. “Building on the first-half performances, we face the second half of the year with confidence and count on the quality of our products and the talent of our teams to further strengthen our leadership in the world of high-quality products.”
The reception for new lines by the label is keeping management upbeat despite weakness in China’s markets and what analysts have described as a growing “handbag fatigue” among consumers.
“Louis Vuitton is benefiting from a strong creative dynamic fueled by the continued success of its iconic Monogram models and the development of new leather lines,” said Christopher Hollis, investor relations rep for LVMH, during the Q2 conference call. “Nicolas Ghesquière’s shows in emblematic locations have been very well received across key markets and have generated great excitement around the world.”
Ghesquière joined Louis Vuitton in 2013 as artistic director of women’s collections after 15 years at Balenciaga.
“Louis Vuitton work will continue to further the qualitative development of the brand through innovation across all product categories and the selective development of its retail network,” Hollis said.
Earlier this month, LVMH opened its second private museum, a Louis Vuitton art gallery, in less than a year. It’s located in Asnières, next to the Maison’s historic workshops.
LVMH management said they’re also seeing strong momentum at Céline and Fendi, while the Marc Jacobs and Donna Karan brands have created pressure on profit margins and are being repositioned under new management teams.
Fashion and leather goods remain LVMH’s strongest category.