European multinational luxury goods conglomerate LVMH recorded an unexpected revenue and profit in 2016 due to higher sales in the United States and Europe,coupled with a pick-up in demand in Asia region as well. It has recorded revenue of Euros 7.03 billion (Pounds 6 billion) in 2016, registering an increase of 6 per cent over last year. This news has come as breather for luxury industry after setback amid terror attacks in Europe, a crackdown on corruption in China and political uncertainty in the US.
Bernard Arnault, Chairman and CEO of the fashion retailer, who recently met US President Donald Trump and discussed company’s expansion in US, thought the first half of 2017 should be “relatively easy” for the Group, but reportedly warned that tougher year-ago comparisons and uncertainties ranging from the impact of Brexit to the new Trump administration could make the second-half “more difficult”.
Also Read – LVMH CEO meets Donald Trump, confirms US expansion
The Group employs over 83,000 people and operates about 2,400 stores worldwide is prepared to continue growth in 2017 also. LVMH’s rivals in the luxury industry, such as Cartier owner Richemont and British luxury brand Burberry have also signalled better demand in mainland China and improving tourist spending in the last part of the year. 2017 is expected to be a good year for luxury goods sector.