Louis Vuitton India profit jumps 50% in FY17
LVMH Moet Hennessy Louis Vuitton, the world’s biggest luxury goods company, posted an over 50 per cent jump in profit in its retail store business in India in the financial year ended March 2017.
LVMH, which sells luxury handbags, fashion and other leather goods and perfumes and cosmetics, reported a profit after tax of over ` 8 crore compared with ` 5 crore in the previous year for Louis Vuitton India Retail Pvt Ltd. Revenue went up to ` 178 crore from ` 167 crore.
Globally, LVMH’S portfolio of brands includes Louis Vuitton, Fendi, Berluti, Christian Dior and Marc Jacobs. In India, it operates brands such as Fendi through separate registered entities. Louis Vuitton India is likely to have included business generated through retail stores in the country and sales from its signature Louis Vuitton handbags. As per records, Louis Vuitton India Retail was incorporated in November 2002 to sell leather goods, shoes, textiles watches and accessories.
However, LVMH Watch and Jewellery India, the company’s other registered entity in the country, reported a wider net loss. Globally, the company’s watch and jewellery category includes brands such as TAG Heuer, Bvlgari and Hublot.
Government measures such as the November 2016 note ban, mandatory sharing of customer PAN details for cash transactions exceeding ` 50,000 and a 1 per cent luxury tax on items worth more than ` 2 lakh were expected to hit business in the luxury market.
Sales growth of luxury jewellery declined to 19 per cent in 2016, of watches to 15.5 per cent , of designer apparel and footwear to 21 per cent and of travel goods to 23 per cent , as per estimates by research firm Euromonitor, which pegged the size of the luxury goods market in India at ` 21,610 crore in 2016.