The 2017 financial statements of LVMH Moet Hennessey-Louis Vuitton S.A. are presented in Appendix C at the end of this book. LVMH is a Paris-based holding company and one of the world’s largest and best-known luxury goods companies. As members of the European Union, French companies are required to prepare their consolidated (group) financial statements using International Financial Reporting Standards (IFRS).

Using the company’s financial statements, calculate the company’s 

(a) Gross profit percentage and

(b) Return on sales ratio for 2016 and 2017. Comment on the trend in the company’s profitability over the two-year period