Mixed bags

4 February 2015 By Carol Ryan

The French luxury group’s 64 pct net profit jump last year sent shares up 5.5 pct. But strip out the windfall from December’s Hermes stake disposal and the view is less rosy. Asia sales fell in Q4, but a resurgent U.S. and the Louis Vuitton renaissance are brighter spots.

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French luxury group LVMH posted comparable fourth-quarter sales growth of 5 percent on Feb. 3.

Annual net profit increased 64 percent, buoyed by a 2.8 billion euro capital gain from the Dec. 17 distribution of shares built up in rival Hermes.

Louis Vuitton, the group’s flagship brand, was boosted by new products and strong trading in the United States, LVMH Chief Executive Bernard Arnault said.

Sales in the United States increased 13 percent in the fourth quarter, while Asia revenue fell 6 percent.

Group shares were up 5.5 percent at 1230 GMT on Feb. 4.

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