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Business trends

Europe's luxury brands buoyed by Chinese spending

But trade war expected to rear its head in second-half results

A couple shop at a Louis Vuitton store in Shanghai.
A couple shop at a Louis Vuitton store in Shanghai.   © Reuters

GENEVA -- European luxury brands thrived in the first half of 2018 thanks to brisk demand from affluent Chinese consumers spurred on by a government that sees domestic consumption as crucial to keeping cash in the country.

Net profit at France's LVMH Moet Hennessy Louis Vuitton for the half ended in June jumped 41% on the year to about 3 billion euros ($3.48 billion). Revenue growth was driven by the mainstay fashion and leather goods segment, which logged a 25% in sales, while perfumes, watches and jewelry also sold well.

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