Organic revenue growth for the whole group was 5% compared with the same period in 2013, and in a statement LVMH described “resilience” in Europe, “despite a still challenging economic environment”.
Profit from recurring operations (excluding new openings and acquisitions) for the first half of 2014 was €2.57bn and current operating margin reached 18%. The firm said negative exchange rate effects “weighed strongly on the first half”.
The jewellery and watches part of the business enjoyed modest revenue growth in H1, (with organic revenue climbing 3%, but reported revenue falling 1%, to €1.26 bn), but profits from recurring operations suffered during the period, and by that measure jewellery posted a drop of 31% to €107 million (£85m).
On jewellery and watches, LVMH said: “The uncertainties linked to the economic environment continue to make multi-brand retailers prudent in their purchasing. The performance in the brands’ own boutiques exhibited significant growth. Bulgari benefited from positive momentum in jewellery. TAG Heuer focused on the development of its iconic lines.
“The decrease in profit from recurring operations, which stood at €107 million, is principally explained by a negative exchange rate effect, while investments in communications continue.”
Among LVMH’s jewellery brands are TAG Heuer, Chaumet, Fred and Bulgari.
Bernard Arnault, Chairman and CEO of LVMH, said: “The results of the first half demonstrate LVMH’s excellent resilience, thanks to the strength of its brands and the responsiveness of its organisation in a climate of economic and financial uncertainties.
“Following the first half’s good resilience, it is with confidence that we approach the second half of the year and rely on the creativity and quality of our products, and the effectiveness of our teams, to pursue further market share gains in our traditional markets, as well as in high potential emerging territories.”