LVMH just reported that net profits for the first half of the year fell 23 percent. This is largely owing to the fine Champagne, watches, and jewelry the company sells — or, more accurately, failed to sell from January through June. The one company under the LVMH umbrella that continues to pull more than its weight is Louis Vuitton. The label posted a 7 percent profit in same-store sales on fashion and leather goods. It's no surprise when you think about it. Louis Vuitton has the most powerful people in the world in its corner: Marc Jacobs, Kanye West, Buzz Aldrin, Madonna, and Stephen Sprouse, to name a few.
LVMH chief Bernard Arnault called the results "particularly remarkable given the global economic crisis." We're not as optimistic. What if LVMH rescinds their Moët Champagne sponsorships of parties in the face of these losses? In a perfect world, they'd replace them with gifts of Louis Vuitton keychains. Or monogrammed Madonna and Kanye West dolls.