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LVMH posts lower first half profits

A man holding an umbrella walks past a Louis Vuitton store in Shanghai.
Tomohiro Ohsumi | Bloomberg | Getty Images
A man holding an umbrella walks past a Louis Vuitton store in Shanghai.

LVMH on Thursday posted lower profits and margins on the back of a 3 percent rise in first-half sales that came in below expectations.

The world's biggest luxury group, owner of Hennessy cognac and the Louis Vuitton fashion brand, made a profit from recurring operations of 2.576 billion euros ($3.47 billion), down 5 percent from the same period a year earlier.

LVMH posted first-half revenue growth of 3 percent, or 5 percent on a like-for-like basis.

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First-half sales rose to 14 billion euros, below a Thomson Reuters I/B/E/S average estimate of 14.349 billion.

The group's first-half current operating margin dropped to 18 percent from 19.8 percent last year.

LVMH said trading in Europe was resilient "despite a still challenging economic environment" and sales continued to grow in Asia and United States.

The group proposed an interim dividend of 1.25 euros to be paid in December.

($1 = 0.7425 Euros)

— By Reuters