LVMH reports revenue and profit decline

Weaker demand for wines and spirits and fashion resulted in a decline in revenue and profit for luxury group LVMH in the first half of the year.

Revenue fell by 4 percent to 39.8 billion euros, as announced by the company on Thursday in Paris. Trade tensions between key markets, the US and China, impacted demand in the wines and spirits business.

The decline did ease slightly in the second quarter compared to the start of the year. However, the performance of the highest-revenue-generating fashion and leather goods division was significantly weaker than in the previous three months and fell short of analysts' expectations.

Profit from recurring operations, adjusted for one-off items, fell by 15 percent to around nine billion euros in the first half of the year, exceeding the drop in revenue. However, analysts had expected an even greater decline. LVMH's net profit was 5.7 billion euros, 22 percent lower than in the same period of the previous year.

LVMH's American depositary receipts, listed in New York, fell by 3 percent in an initial reaction.

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