LVMH Q2 Sales Climb 19%, Offsetting Slower China

A logo of LVMH is seen at its exhibition space, at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France June 15, 2022. (Reuters)
A logo of LVMH is seen at its exhibition space, at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France June 15, 2022. (Reuters)
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LVMH Q2 Sales Climb 19%, Offsetting Slower China

A logo of LVMH is seen at its exhibition space, at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France June 15, 2022. (Reuters)
A logo of LVMH is seen at its exhibition space, at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France June 15, 2022. (Reuters)

Sales at LVMH, the world's largest luxury group, rose by 19% in the three months to June, as robust growth in the US and China helped it offset a new round of lockdowns in China.

LVMH, which owns dozens of high-end labels such as Tiffany, said sales came to 18.73 billion euros ($18.95 billion) in the second quarter, beating analyst expectations for 17.13 billion euros in a Visible Alpha consensus cited by UBS.

The growth pace in the second quarter was a tad slower than in the first three months of 2022, when group sales had climbed by 23%.

Demand for fashion and leather goods from its star labels Louis Vuitton and Dior eased up slightly from high levels at the start of the year, rising by 19% in the quarter, as flows of travelling shoppers returning to Europe helped to mitigate disruptions to business in China.

LVMH has been tapping into strong, post-pandemic demand for its designer labels as socializing resumes and shoppers continue to spend savings from lockdowns, brushing off concerns about turbulent stock markets and rising prices.

The company's strong second quarter is setting the tone for rivals, with Gucci-owner Kering reporting its own first half results on July 27 and Hermes on July 29.



Hugo Boss Reports Q2 Operating Profit Beat Supported by Cost Cuts 

The new Hugo Boss logo and their website shop are seen in this illustration taken, May 17, 2024. (Reuters)
The new Hugo Boss logo and their website shop are seen in this illustration taken, May 17, 2024. (Reuters)
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Hugo Boss Reports Q2 Operating Profit Beat Supported by Cost Cuts 

The new Hugo Boss logo and their website shop are seen in this illustration taken, May 17, 2024. (Reuters)
The new Hugo Boss logo and their website shop are seen in this illustration taken, May 17, 2024. (Reuters)

German fashion group Hugo Boss reported a slightly better than expected quarterly operating profit on Tuesday, helped by cost measures as a stronger euro weighed on its sales.

Earnings before interest and taxes rose 15% to 81 million euros ($93.5 million) in the second quarter, from 70 million a year earlier. That was above analysts' forecast of 77 million euros, a company-provided poll showed.

The company confirmed its sales and profit guidance for 2025, but said it now expected sales in reporting currency in the Americas to remain at around last year's level. It had initially expected low single-digit percentage growth in the region, dragged by a weaker US dollar against the euro.

When converted into euros, Hugo Boss' revenue declined by 1% to 1 billion euros in the quarter, roughly in line with analysts' forecast of 998 million euros.