By Nadya Masidlover
PARIS--French luxury company LVMH Moet Hennessy Louis Vuitton SA
(MC.FR) anticipates "very good results" in 2015, Chief Executive
Bernard Arnault said Thursday, citing favorable currency effects
and an improvement in Europe's economic context.
Speaking at the company's shareholder meeting, Mr. Arnault said
he expects the positive sales figures recorded in the first quarter
to "probably" continue throughout the year. Monday, LVMH posted a
16% rise in sales for the first three months of the year to 8.3
billion euros ($8.8 billion), buoyed by the weak euro.
The company boss said 2015 will be a very different year from
2014, when LVMH posted a drop in operating profit though net profit
hit record levels thanks to a capital gain linked to the company's
decision to relinquish its stake in smaller rival Hermes
International SCA.
This year, "operational profit will bounce back," Mr. Arnault
said.
Mr. Arnault said the company is set to gain from the recent drop
in the euro--which is bolstering the results of European companies
dependent on exports--in addition to falling fuel prices and an
improving macroeconomic outlook in Europe.
He added that the only "difficult economic point" would be
China, a key market for the luxury goods industry. After a long
streak of stellar growth in the country, many luxury companies have
pointed to cooling demand in more recent times amid an economic
slowdown.
Nonetheless "Chinese clientele continues to grow for LVMH," said
Mr. Arnault.
Write to Nadya Masidlover at nadya.masidlover@wsj.com
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