LVMH, the world's biggest luxury goods group, posted a 10 per cent rise in first-half sales yesterday, slightly beating forecasts, and repeated its aim for "tangible" growth in full-year operating profit.

The owner of brands such as Moët & Chandon champagne, Kenzo fashion, Christian Dior perfumes and Louis Vuitton handbags said sales to the end of June rose to €6.173 billion from €5.609 billion a year earlier, restated under IFRS accounting rules.

On an underlying basis that factors out acquisitions, disposals and currency swings, sales rose 12 per cent compared with analysts' average estimate of 10.1 per cent.

All divisions contributed to turnover growth. The biggest advance was a 15 per cent rise in wine and spirits, helped by strength in cognac sales after the company raised prices about 6 per cent in the first quarter. Hennessy cognac sales rose strongly in the United States and Japan, LVMH said.

In fashion and leather, LVMH said its flagship Louis Vuitton leather goods maker continued to grow at a double-digit pace, boosted by the new Cherry, Denim and Antigua lines.

The new collections, it said, were already attracting waiting lists worldwide. Commenting on the rest of the year, LVMH said it would focus on developing its market share for leading brands and on new product launches.

Separately, Christian Dior, the holding company for LVMH, reported that first-half sales grew 10 per cent and confirmed a goal for sizeable 2005 operating profit growth.

Christian Dior sales rose to €6.465 billion from €5.877 billion in the year-earlier period and were up 12 per cent on an underlying basis.

Sales at its couture fashion division climbed to €301 million from €275 million.