The year began slowly for many luxury brands this year, including top players, such as LVMH and Gucci. While first quarter sales were sluggish, several companies have shown an upswing in reporting sales for the second quarter of 2013.
Louis Vuitton and Kering SA are both reporting growth and are expecting the increases to continue throughout the second half of 2013. LVMH is reporting a 9% increase in the second quarter versus a 7% growth in the first quarter.
With first quarter sales of LVMH and Gucci being at the lowest point through the first quarter in three years, this news eases the concerns for many investors, Bloomberg reports.
“It is with confidence that we approach the second half of the year,” [LVMH’s] Chairman and Chief Executive Officer Bernard Arnault said in the statement.
Increased investment in smaller brands is helping support growth at LVMH’s fashion and leather-goods unit, said Solca. The “EBIT impact shows this transition is neither immediate nor painless, though, as LVMH scrambles to support growth.