Business

LVMH profits from luxury goods demand

LVMH shop front
Image caption Luxury brands are enjoying strong growth thanks to to rising demand from emerging economies

LVMH has reported a big jump in profits as demand for luxury goods shows no signs of slowing despite concerns over the strength of the global economy.

Net profit for the first half of the year came in at 1.31bn euros ($1.9bn; £1.16bn), up 25% on a year earlier. Revenue rose 13% to 10.3bn euros.

The owner of Louis Vuitton and Moet & Chandon said it was approaching the second half year "with confidence".

LVMH agreed a deal in March to take over Bulgari for 3.7bn euros.

The company also owns more than 20% of Hermes.

All divisions of the business saw increases in revenue in the first half, with watches and jewellery performing particularly well.

"LVMH's excellent performance in the first half, once again, demonstrates the exceptional appeal of our brands," said group chief executive Bernard Arnault.

Luxury brands are enjoying strong growth, in large part thanks to rising demand from emerging economies, particularly in Asia.

Hermes and Burberry have recently reported strong second quarter sales.

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