Net profits at LVMH drop by 23%

During the first six months of 2009, net profits at LVMH Moët Hennessy Louis Vuitton dropped by 23 percent to $975.5 million, and revenues rose negligible by 0.2 percent to $11.1 billion (EUR 7.8 billion). Its jewellery and watch segment saw sales dropping by 17 percent to $491.3 million (EUR 346 million), while jewellery profits were down by 73 percent to $28.4 million (EUR 20 million).

The lowered performance of the watches and jewellery segment were attributed to the economic slowdown and destocking at retailers. Although in the United States and Asia, the watch brand TAG Heuer increased in market share. Despite the low performance in the said six months, the company believed its luxury brands performed appreciably in the said tenure.