Louis Vuitton Moët Hennessy, or LVMH, announced a sales increase in fashion and leather accessories in the second quarter of 2016 on Tuesday.
According to an article on The Fashion Law, LVMH announced that sales at the companies most important brands were up by 1% in the second quarter of 2016.
That doesn’t seem like much, but it’s better than last quarters overall sales of ready to wear and leather accessories.
LVMH’s ready to wear and leather accessories sales declined by about 1% last quarter and the only things that had sales increase were the company’s wine sales by 9% and its perfumes and cosmetics by 8%. Overall revenue increased by about 3%.
LVHM CEO Jean-Jacques Guiony said during an earnings call that demand for Louis Vuitton was “very positive in the United States” and had improved in China but had decreased in Europe and was in the “lower single digit terms” in Japan. Guiony continued to say that profitability at Louis Vuitton was similar in the first quarter of 2016 to the first quarter of last year.
LVMH doesn’t provide sales for its individual companies but executives did confirm that both Marc Jacobs’ and Donna Karan’s sales declined in the first and second quarter of this year.
New York clothing company G-III Apparel Group announced Monday that it had purchased Donna Karan and DKNY for $650 million from LVMH after the company had discontinued DKNY Jeans and DKNY C in April.
Guiony said that the sale of Donna Karan and DKNY did not mean that LVMH would be selling Marc Jacobs, which people said the company might do because of the brand’s declining sales.
Regardless, LVMH’s fashion and leather accessories sales have increased during the second quarter of 2016 because of demand for products at brands like Louis Vuitton and many others.
Guiony didn’t say whether or not the company’s fashion and leather accessories sales will continue to increase, but they might. We’ll just have to wait and see.
So, what do you think? Will LVMH’s fashion and leather accessories sales increase? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.
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