With the world’s economy in a crunch, luxury bag company Louis Vuitton, through its finance director, Jean-Jacques Guiony, reports that business is still holding. Acknowledging that profits and growth have not been the same as last year, the company puts its situation as slightly better in spite of a jarring economy, with a 9% growth.
In a conference call with investors, LVMH finance director Jean-Jacques Guiony said business is holding so far, even if growth was not as brisk as earlier this year. LVMH reported a 4.5 percent increase in sales for the first nine months of the year to 11.96 billion euros, or $17.94 billion.
He said Louis Vuitton last week logged retail sales growth of 12 percent. His comments helped send LVMH stock surging into positive territory after trading in the red for most of the day. Shares in the French luxury firm closed up 2.2 percent as the overall CAC40 index of top French companies lost close to 10 percent.
Guiony said LVMH sales in September were relatively strong after some weakness in August, particularly in Asia, which LVMH attributed to a disruption in its Chinese business linked to the Olympic Games. He said the U.S. was holding up, as well.
“I didn’t say September was fantastic,” stressed Guiony. “But it was much better than August and more or less in line with July.”
Despite uncertainty about the future market, Guiony painted an overall confident picture for the resilience of luxury sales.
Via Footwear News
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