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LVMH bucks the trend

posted 18 Oct 2011, 05:05 by Mpelembe   [ updated 18 Oct 2011, 05:05 ]
The world's largest luxury goods group LVMH, maker of brands like Louis Vuitton, has bucked the global economic slowdown to post forecast-beating third-quarter sales growth.

FRANCE-LVMH - The world's biggest luxury group LVMH shows no signs of slowing down despite the global downturn.

It's sales in the third quarter beat forecasts at just over 6 billion euros - a rise of 15 percent. The makers of Louis Vuitton handbags says shoppers have continued spending throughout the year - especially in its key markets like China.

The group says its also benefitted from currency fluctuations and the acquisition of Italian jeweller Bulgari, which it bought earlier this year. That helped boost sales at its watch and jewellery division by 76 percent in the nine months to September.

Wines and spirits also did well with an increase of 11 percent.

The strong sales at LVMH follow those from luxury brands Burberry and Prada. The company says its sure the trend will continue. But some fear the eurozone debt crisis could push the world back into recession and China could suffer a slowdown.

Hayley Platt, Reuters