LVMH posts record profits for 2006

Stefanie Ives

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LVMH Moët Hennessy-Louis Vuitton has built on the previous year’s growth to post record profits in 2006.

Luxury goods group LVMH Moët Hennessy-Louis Vuitton has announced net profits of €1.9bn ($2.5bn) for 2006, representing year-on-year growth of 30%. Selective Retailing—which includes travel retailer DFS Group and beauty chain Sephora—recorded organic growth of 9% and a rise of 15% in profit from recurring operations.

The company reported that DFS benefited from its growing client base in Asia and is continuing to raise its image as a luxury retailer by renovating its Galleria in Guam. A new Galleria is expected to open in 2008 at the Four Seasons Macau.

LVMH chairman and CEO Bernard Arnault said: “ The excellent performance in 2006 illustrates the vitality of our leading brands, which continue to strengthen and gain market share. The year also confirmed the strong potential of our high-growth rising star brands and the group’s leading position in emerging markets.”