LVMH Moët Hennessy Louis Vuitton recorded revenue of €10.3 billion in the first half of 2011, an increase of 13%. Profit for the first half rose to €2.223 million, an increase of 22% compared to the same period in 2010, which had itself shown strong growth. Organic revenue for watches and jewelry grew by 27% and profit from recurring operations increased by 73%. The Group saw sustained growth in the U.S., Europe and Asia.
LVMH attributed strong revenue growth at TAG Heuer to the automatic chronograph with the 1887 Calibre movement, to the new women’s ranges in the Formula 1 line, and to the selective opening of TAG Heuer stores. TAG Heuer opened its flagship U.S. boutique in Las Vegas in June.
New Hublot King Power models with manufacture Unico movements were also cited as contributing to the results.
LVMH said Zenith saw strong demand for its new collections.
The first half was also marked by the Group’s agreement with the Bulgari family for the contribution of its majority shareholding to LVMH. Having obtained the agreement of the relevant authorities, the LVMH Board approved this contribution on June 30, 2011, bringing LVMH’s holding in Bulgari to 76.1%. LVMH states that a tender offer for the shares owned by minority shareholders will be launched shortly.
LVMH sees strong results in the watch segment continuing as many of the new watch models shown at Baselworld will be delivered in the second half.
WatchTime FREE TAG Heuer Report
Become a TAG Heuer expert! Get WatchTime's unique FREE Special Report: The True Story behind the TAG Heuer Carrera, TAG Heuer Formula 1 and other legendary watches.