LVMH upbeat as Asian return boosts DFS Group

Emily Pacey

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Powerful growth in the Selective Retailing division drives profits at LVMH

LVMH has recorded an 11% increase in profits for the first half of 2005, with growth driven primarily by the selective retailing division, including DFS Group and beauty retailer Sephora.

DFS Group and Sephora experienced a 70% surge in profits, to $149m, compared with the same period in 2004. DFS benefited from a rapid increase in tourism in Asia, its primary market, while LVMH said that Sephora was recording excellent performance in the US.  The launch of Sephora's online retail website in June has helped drive sales in France.

Results in other categories were mixed. In LVMH's biggest sector, fashion and leathergoods, profits were up 4% on last year.  Second-largest category wines and spirits experienced a decline in profits of 6.4%. Perfumes and cosmetics grew by a third. Having broken even last year, watches and jewellery continued its strong recovery, making a profit of $17.28m in the first half of 2005.

The company said that the results confirmed their objective of obtaining a significant increase in profit from recurring operations in 2005.