FRANCE/INTERNATIONAL. Leading luxury goods group LVMH Moët Hennessy Louis Vuitton posted revenue of €42.2 billion in the first half of 2023, up +15% in reported terms and +17% in organic terms year-on-year. Among the highlights was a return to profit in the half for DFS Group (co-owned by LVMH and DFS Co-Founder Robert Miller), as international travel rebounded.
All business groups achieved double-digit organic revenue growth over the half year, except for Wines & Spirits, which faced a particularly high basis of comparison. In the second quarter, organic revenue growth was +17%, in line with trends seen in the first quarter.
In Selective Retailing, organic revenue growth was +26% in the first half with profit from recurring operations doubling.
LVMH said: “DFS benefited from the gradual recovery in international travel and, in particular, from the return of tourists to the flagship destinations of Hong Kong and Macau. In France, the strong performance of La Samaritaine in Paris confirmed its appeal as a destination, within the context of an increasing number of Asian tourists.”
The company said that DFS revenues has progressed though it remains below 2019 levels. While travellers have returned to Hong Kong and Macau, recovery is “more gradual elsewhere”, said LVMH.
The Wines & Spirits business group recorded a slight revenue decline (-3% organic) in the half, when compared to a particularly strong first half in 2022. Profit from recurring operations was down -9%. The Champagne business recorded an increase in revenue over the half year, while Hennessy Cognac was impacted by the economic environment in the US and by the continued high stock level of its retailers.
The Perfumes & Cosmetics business group recorded organic revenue growth of +13% year-on-year in H1, with strong momentum achieved through innovation and a highly selective distribution policy. Profit from recurring operations was up +15%. LVMH cited in particular the performance of Christian Dior (across categories), the growth of Guerlain across skincare and fragrance, along with Benefit and Fenty Beauty.
The Fashion & Leather Goods business group recorded organic revenue growth of +20% in the first half. Profit from recurring operations was up +14%. Louis Vuitton had an excellent first half, said LVMH, which included the arrival of Pharrell Williams as Men’s Creative Director. Set on the stage of the Pont-Neuf bridge in Paris, his first fashion show was met with “huge enthusiasm” and more than 1.1 billion views on social media reaching an all-time high.
Christian Dior continued to post growth in all categories, Celine also grew and Loewe continued to strengthen its distribution network. Loro Piana, Rimowa, Marc Jacobs and Berluti enjoyed an excellent start to the year, said the group.
Watches & Jewelry achieved organic revenue growth of +13%, with profit from recurring operations up +10%. In jewellery, Tiffany, Bulgari, Chaumet and Fred experienced strong growth over the first half. The LVMH watchmaking Maisons TAG Heuer, Hublot and Zenith unveiled many new products during LVMH Watch Week and the Watches & Wonders trade show.
Profit from recurring operations for the first half of 2023 was up +13% at €11,574 million. Operating margin reached 27.4% of revenue. Group share of net profit was up +30% at €8,481 million.
Chairman and CEO Bernard Arnault said: “LVMH achieved outstanding results during a six-month period of ongoing economic and geopolitical uncertainty. The strong creative momentum and excellent distribution of our Maisons continued to inspire dreams, as demonstrated by the enthusiastic reception given to Pharrell Williams’ first fashion show for Louis Vuitton as well as the reopening of the New York ‘Landmark’ of Tiffany & Co.
“We continued to see progress relating to our environmental, social and societal commitments, most notably in the recent announcement of an ambitious water sobriety plan intended to reduce our overall water consumption footprint by -30% by 2030. Thanks to the desirability of our brands, we approach the second half of the year with confidence and optimism but will remain vigilant within the current environment and count on the agility and talent of our teams to further strengthen our global leadership position in luxury goods in 2023.” ✈
