Breaking: LVMH Reports 23 Percent Decline in Profits

Despite ad campaigns for their successful handbag line with stars ranging from Buzz Aldrin to Madonna, the world's largest luxury company faced a serious decline of nearly 25 percent of its profits in the first half of the year --  suggesting that people just aren't buying as much champagne as they used to.

LVMH was quick to report that sales among its handbags division (a.k.a. Louis Vuitton) were actually “particularly exceptional," which stands to reason considering retailers of late have been banking on the success of investment-style, functional handbags. (Note: the handbag market shall survive this!) It seems clear the real losses are sustained among the wine, spirits, and watches divisions -- a.k.a. the Moet Hennessey within the LVMH. So for all of you thinking maybe this might mean a run on handbags at Louis Vuitton on 57th ... Fat chance.

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