INTERNATIONAL. LVMH Moët Hennessy Louis Vuitton (LVMH) today posted a -1% year-on-year drop in reported revenue (+2% organic) to €41.7 billion in the first half of 2024.
The performance came in the face of what the French luxury and premium goods giant described as an “uncertain” geopolitical and economic environment.
Profit from recurring operations for the first half of 2024 fell -8% to €10.7 billion, equating to an operating margin of 25.6%, the latter significantly exceeding pre-COVID levels.
However, travel retailer DFS Group saw business activity remain below pre-COVID level, with its business being affected by what LVMH called “marked differences” in tourist traffic across its various destinations.
The travel retailer performed strongly in Japan, buoyed by a 34-year low for the Yen.
Within Selective Retailing, to which DFS belongs, organic revenue growth reached +8% in the first half while profit from recurring operations was up +7%. That was driven by domestic beauty product chain Sephora’s “remarkable growth”.
“While international travel only partially recovered in Europe and flagship destinations Hong Kong and Macau, the Maison [DFS] recorded good performances in Japan and at airports in the United States,” LVMH said.
The Causeway Bay Galleria in Hong Kong revamped its customer experience with a new look and expanded product range, including a new ‘Beauty Collective’ area, featuring a unique selection of brands along with a multisensory experience and an array of personalised services.
LVMH noted DFS Group’s new Yalong Bay Galleria project in Sanya, on the island of Hainan in China, had officially kicked off. “DFS plans to offer an extensive range of premium brands and an unrivalled selection of bespoke services at this location,” the group said.
LVMH Chairman and CEO Bernard Arnault commented: “The results for the first half of the year reflect LVMH’s remarkable resilience, backed by the strength of its Maisons and the responsiveness of its teams in a climate of economic and geopolitical uncertainty.
“Driven as ever by our dual focus on desirability and responsibility, we have continued to work towards achieving the targets set out in our environmental and social action programmes.
“In a year marked by our partnership with the Paris 2024 Olympic and Paralympic Games, we are honoured to share our creativity, excellent craftsmanship and deep commitment to society to make this event a resounding success and an opportunity for France to shine on the world stage.
“While remaining vigilant in the current context, the Group approaches the second half of the year with confidence, and will count on the agility and talent of its teams to further strengthen its global leadership position in luxury goods in 2024.”
Also within Selective Retailing, Sephora continued to gain market share, reaffirming the brand’s strength and the powerful draw of its unique approach within the prestige beauty market, as well as its position as the world’s leading fragrance and cosmetics retailer, LMH said.
Also within Selective Retailing, department store Le Bon Marché continued to achieve growth, driven by a differentiation strategy notable for a continuously renewed selection of products and services and unique slate of events.
More details to follow. ✈
