LVMH global sales soared 15 per cent in the first half year, largely driven by strong sales in Asia and France.
Revenue totalled €19.7 billion in the first half of 2017, and profit from recurring operations was €3.64 billion, up by 23 per cent. The group’s operating margin reached 18.5 per cent, up 1 per cent.
“LVMH has enjoyed an excellent first half, to which all our businesses contributed,” said Bernard Arnault, chairman and CEO.
“In the current climate of geopolitical and economic instability, creativity and quality, the founding values of our group, have more than ever become benchmarks for all. The increasing digitalisation of our activities furthermore reinforces the quality of the experience we bring to our customers. In an environment that remains uncertain, we approach the second half of the year with caution.”
Highlights of the first half of include:
- Solid growth in the wines and spirits division, with sales up 10 per cent and improved momentum in China.
- Sales up 14 per cent in the fashion and leather goods division, thanks to solid creative momentum at Louis Vuitton and further strengthening of other brands. “The momentum at Louis Vuitton, driven by its exceptional creativity, was demonstrated across all its product categories. The Cruise Collection presented at the Miho Museum in Kyoto, Japan, was a great illustration of this. The launch of new models resulting from the collaboration with the artist Jeff Koons and the cult New York skatewear brand, Supreme, were the highlights of the first half. Fendi continued its strong growth and enriched its leather goods lines, notably with the new Kan-I model. Loro Piana strengthened its presence in Asia with several openings. Céline, Loewe and Kenzo experienced good growth. Marc Jacobs strengthened its product offering and continued its restructuring. Other brands continued to grow. Rimowa, which joined the LVMH Group, is consolidated for the first time in the first half-year accounts.”
- The perfumes and cosmetics business posted organic revenue growth of 12 per cent. “Christian Dior showed strong growth momentum, sustained by the vitality of its iconic fragrances J’adore and Miss Dior, the continued success of Sauvage and the performance of its latest makeup creations. Guerlain enjoyed a successful launch of its new perfume, Mon Guerlain, represented by Angelina Jolie. Parfums Givenchy experienced rapid growth in makeup, especially its line of lipsticks. Benefit continued to roll out its Brow Collection.”
- In the watches and jewellery division, Bvlgari had a strong first half and the successful development of Tag Heuer’s core range had an impact, helping at 13 per cent overall increase in sales. “Bvlgari enjoyed an excellent first half and continued to gain market share. This dynamic is notable in both jewellery and watchmaking, especially in China and Europe, thanks to the success of the iconic Serpenti and B-Zero 1 lines and the new Octo Finissimo watch. Tag Heuer experienced solid revenue growth in a tough watch market. The new products created in its flagship Carrera, Aquaracer and Formula 1 collections were very successful and a new generation of the smartwatch was launched. Hublot continued its growth.
- Strong growth Sephora and improved momentum of DFS in Asia, helped LVMH’s selective retailing business group achieve organic revenue growth of 12 per cent. “Sephora continued to make progress and reinforced its omnichannel strategy. While increasing its share of online sales, Sephora continued to invest in extending its network and renovating existing stores, particularly in New York and Dubai. Le Bon Marché developed a new online shopping experience by launching its digital platform 24 Sèvres. DFS experienced better momentum in Asia, while the T Galleria, which opened in 2016 in Cambodia and Italy, continued to develop.”