Cost control offsets yen effect at DFS

Gavin Lipsith

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LVMH Moët Hennessy-Louis Vuitton reports a 24% increase in profits at its Selective Retailing division, with DFS overcoming a decline in the value of the yen through rigorous cost control and growing its Asian customer base

DFS Group has overcome the declining value of the yen through its focus on gaining Asian customers and maintaining rigorous cost controls over the first half of 2006, according to parent company LVMH Moët Hennessy-Louis Vuitton. The company's Selective Retailing division, which includes DFS and beauty chain Sephora, posted a 24% increase in profit for the six months.

LVMH reported a 35% increase in operating profit on a revenue increase of 13%, with all business sectors achieving double-digit growth. In particular the group highlighted a strong recovery in the Watches & Jewellery division, which recorded growth of over 10% for the first time.

LVMH chairman Bernard Arnault said: "Our performance demonstrates the exceptional appeal of our brands as well as the effectiveness of our strategy."

The company said that it was on track to achieve a "very significant increase for results in 2006".