LVMH Q2 sales rise 3%

LVMH reported second-quarter sales of €19.5 billion, up 3% on an organic basis, driven by strong U.S. demand (6% growth) which offset weaker spending in Europe and the Gulf due to the Iran war. The fashion and leather goods division posted 1% organic growth, its first quarterly increase in two years but below analysts' expectations of 1.7%. The Watches & Jewellery division was the fastest-growing, with 11% organic sales growth. First-half sales rose 2% organically but fell 3% on a reported basis to €38.6 billion, while profits from current operations fell 4% to €8.7 billion. LVMH shares have fallen 28% year-to-date. CEO Bernard Arnault dismissed reports of a succession battle. The company noted that the Iran war reduced growth in the fashion division by 1 percentage point.