Skip to main content

LVMH Moet Hennessy Louis Vuitton (LVMUY)  , the world's biggest luxury group by revenue, yesterday reported record earnings and revenue for fiscal 2016.

The Paris-based owner of Louis Vuitton and Christian Dior brands said revenue was up 5% year-over-year to €37.6 billion ($40.2 billion) and profit from recurring operations rose 6% to €7 billion.

Revenue from the company's leather and fashion goods business was up 4% for the year to €12.8 billion, while the unit's profit from recurring operations increased by 10% to €3.9 billion. 

"In an environment which remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2017, our leadership in the universe of high quality products," CEO Bernard Arnault said in a statement.

The luxury sector has been negatively affected as terrorism fears have kept tourists from visiting Europe, where many brands record a significant amount of sales. 

U.S. luxury retailers including Coach (COH) and Michael Kors (KORS) are scheduled to report financial results for the holiday quarter in coming weeks.

Going into the results, Credit Suisse analysts are more positive on Coach stock than on Michael Kors. 

Coach's promotions were stable throughout the holidays, and the company's average unit retail, or net sales divided by number of units sold, were up 27% year-over-year, analysts led by Christian Buss said in a note today. Michael Kors ran steep promotions on its website, and its AURs were in-line with the sector. 

Coach is scheduled to report fiscal 2017 second-quarter results on Tuesday, while Michael Kors is expected to report fiscal 2017 third-quarter results a week later.

Shares of LVMH, Coach and Michael Kors are all trading lower early afternoon today.