Luxury goods purveyor LVMH says ‘uncertain’ environment in Europe behind flat-lining profit

The Associated Press 0

PARIS – Luxury goods purveyor LVMH Moet Hennessy Louis Vuitton says profit from sales of Bulgari watches, Givenchy gowns and other high-end fashions was almost flat last year while revenue growth slowed sharply.

The fashion company headquartered on Paris’ elegant Champs Elysees boulevard reported net profit of 3.44 billion euros ($4.7 billion) in 2013, up only 0.4 per cent from 3.42 billion euros in 2012.

Sales growth slipped to 4 per cent last year from 19 per cent a year earlier, with the watches and jewelry and fashion and leather goods divisions posting lower year-on-year sales.

Chairman Bernard Arnault said in a statement Thursday the results showed “another excellent performance despite exchange rate volatility and slower growth in the European markets.”

The company also warned that Europe’s economic environment remains “uncertain.”

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