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Family business roundup: growth for luxury fashion brands, Luxottica, and Ford

LVMH and Kering’s luxury brands perform strongly, sunglasses empire Luxottica breaks €2 billion revenue for the second quarter, and Ford sees strong sales in North America and Asia-Pacific/Africa.

LVMH and Kering’s luxury brands perform strongly, sunglasses empire Luxottica breaks €2 billion revenue for the second quarter, and Ford sees strong sales in North America and Asia-Pacific/Africa.

LVMH

Bernard Arnault’s LVMH has announced half year revenues of €13.7 billion, with organic revenue growth up 8% compared to the same period last year.

The group said it continues to experience strong momentum in Asia and the US, and continued to grow in Europe despite economic uncertainty.

LVMH bought several family businesses in the second quarter including Italian luxury cashmere brand Loro Piana.

Arnault, who is chairman and chief executive, said: “Innovation, extreme quality, strong distribution and savoir-faire in all of our businesses reinforce our Maisons. Loro Piana, with whom we share the same values of family and craftsmanship, will fit harmoniously within this dynamic.”

Kering

Fellow French luxury fashion group Kering revealed its net income for the first half had shrunk to €172.5 million from €477 million, due to the disposals of retail arms Fnac and Redcats.

Its net income for continuing operations was up 4.2% on comparable group structure and exchange rates.

The group’s luxury brands, which include Gucci and Yves Saint Laurent, performed strongly, up 8.6% on the first half of 2012.

In contrast the group’s sport and lifestyle arm, was down 27.5% for the same period.

Kering chief executive Francois-Henri Pinault said this was inline with their forecasts for the year and he had confidence the group’s performance would improve for the full year.

Luxottica

Italian sunglasses empire Luxottica revealed its net profits for the second quarter exceeded €2 billion for the first time ever, up 9.4%, based on constant exchange rates, compared to the same period last year.

Sales were up across all its primary markets, and despite economic uncertainty, rose by 14.8% in Europe.

Andrea Guerra, Luxottica’s chief executive officer, said Ray-Ban and Oakley performed particularly well over the period, which he attributed in part to new marketing initiatives.

The retail division also performed well, with an increase in comparable store sales of 7.3% for the Sunglass Hut.

On July 4 the group opened a flagship store in Times Square, New York, with hopes it will become their first store to generate eight-figure sales.

Ford

Ford revealed revenues of $38 billion (€28.6 billion) for the second quarter, with strong performances in North America and Asia-Pacific/Africa.

The second quarter results were up $4.8 billion from a year ago and represent the 16th consecutive quarter of profitability.

For the first half North America set an earnings record with a pre-tax profit of $4.7 billion, up $628 million compared with the same period a year ago. Asia-Pacific Africa also delivered its best quarterly result, with revenue reaching $3 billion for the period.

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