The first quarter 2006 earnings for
LVMH beat analysts predictions. Turnover increased
by 15% to 3,555 million Euros. According to the group,
this success was due to a confluence of two factors:
sustained growth in all geographic zones, including
Europe, and an increase in all business activity.
Driving the positive earnings report was the wines
and spirits division, with watches and jewelry placing
second (+23%). The upturn witnessed at the close of
2005 has continued. In conjuncture with its internal
growth, LVMH continues to develop a strategy concentrating
on the development of its prestige labels. Bernard
Arnauld, CEO of LVMH, predicted "that the group would
double its size within five years due to its omnipresence
in the world."
Meanwhile, Louis Vuitton (the LV of LVMH) has been awarded $82,000 in damages after having discovered several counterfeit copies of its famous sacks in a store in Shanghai. Last December, an employee of the French leather maker discovered three types of hand bags carrying a monogram which strongly resembled those of the group, and being sold at $6.20 in a department store. The employee returned the following day, accompanied by two witnesses, bought two other samples and then alerted Chinese authorities, who seized a total of 37 hand bags.