Luxury goods group LVMH Moët Hennessy Louis Vuitton today reported first-half results, with revenue reaching €38.6 billion, down by -3% year-on-year (-2% in organic terms) and profit from recurring operations at €8.7 billion, down by -4%.
Group share of net profit amounted to €5.7 billion, stable year-on-year.
The company said the performance was “very solid in a geopolitical and economic environment that remained disrupted, amplified by the conflict in the Middle East”. Growth accelerated in the second quarter, with organic revenue growth hitting +3% (4% excluding the impact of the conflict in the Middle East).
The Selective Retailing business posted a -2% decline in revenues (+5% organic), with profit from recurring operations climbing +2% year-on-year.
LVMH highlighted the agreements to sell DFS interests in Greater China to China Tourism Group Duty Free; transferring its Los Angeles and San Francisco airport concessions to Duty Free Americas and DFS Okinawa to Avolta.
The Wines & Spirits business group recorded organic flat revenue growth (+5% organic) and profit from recurring operations +11% in the half. The Champagne business showed encouraging signs, in particular for prestige cuvées. In China, Hennessy Cognac saw the positive momentum that began during Chinese New Year continue, noted LVMH.
Revenue for Fashion & Leather Goods posted a -5% drop in revenue (-1% organic), with organic growth up +1% in the second quarter. Profit from recurring operations fell by -7%.
Perfumes & Cosmetics declined -4% (flat in organic terms), with profit from recurring operations down -2%. The Watches & Jewelry division grew revenues by +2% (+9% organic) and showed robust organic revenue growth of +11% in the second quarter. H1 profit from recurring operations rose by +9% year-on-year.
LVMH Chairman and CEO Bernard Arnault said: “LVMH demonstrated its solidity and effective strategy. Our Maisons – which remained focused on ensuring the utmost quality in our products, and several of which are pursuing their creative renewal – continued to inspire dreams and enhance their desirability.
“Strong growth at Sephora and the recovery in Champagne and Cognac also contributed to this excellent momentum. While continuing to pay very close attention to margins, we are entering the second half of the year with renewed confidence in the long-term potential of our Maisons and in our highly committed teams to continue to stand out and reinforce LVMH’s leadership position.” ✈
