Louis Vuit­ton In­dia profit jumps 50% in FY17

Shoes & Accessories - - The Month That Was -

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.

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