Currency swings hit profits at luxury goods giant

Top global luxury goods giant LVMH, owner of Louis Vuitton and Givenchy, said on Thursday that its first-half profits have been

hit by unfavourable exchange rates.

Net profit in the first six months of the year slid 4 percent to 1.51 billion euros, the company said in a statement.

The result fell short of the average forecast of 1.64 billion euros that was expected by analysts, according to a Dow Jones Newswires poll. "Negative exchange rate effects weighed strongly on the first half," the maker of luxury brands such as Fendi, Moet et Chandon and Bulgari said in a statement.

Luxury brands have been hit hard by the strength of European currencies this year, particularly in Asia where many have been targeting increasingly wealthy and brand-conscious consumers.

Earlier this week Swiss watch-maker Swatch Group said the strength of the Swiss franc had been a significant headwind for its business this year. LVMH said its fashion and leather goods and watches and jewellery businesses were hit hardest by currency swings.

Revenue rose 3 percent, however, to 14 billion euros, boosted by its fashion and leather goods business. (AFP)