Global luxury giant LVMH improved its sales in the second quarter despite the continued impact of the conflict in the Middle East.

The group, which owns Louis Vuitton, Christian Dior and Tiffany & Co, posted a 3 per cent uplift in organic sales, which remove foreign exchange fluctuations, during the period. Excluding the impact of the war in the Middle East, organic sales would be up 4 per cent.

The improvement marked an acceleration compared to the 1 per cent increase in the first quarter.

For the first half, revenue stood at €38.6 billion (US$43.9 billion), down 3 per cent on a reported basis but up 2 per cent on an organic basis. 

Management noted that the US saw growth accelerate over the period. Asia (excluding Japan) also saw strong growth, extending the positive trends starting in the second half of last year. 

Japan posted growth for the half, while Europe showed resilience after tourism ‌and spending were hit by the Iran war. 

Profit from recurring operations for the first half slid 4 per cent to €8.7 billion, with an operating margin of 22.5 per cent. Net profit remained unchanged at €5.7 billion.

“LVMH demonstrated its solidity and effective strategy,” said Bernard Arnault, chairman and CEO of LVMH. “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.”

By category, watches and jewellery saw the biggest improvement, with organic sales up 11 per cent. Selective retailing, which includes Sephora, recorded growth of 6 per cent, while wines and spirits rose 5 per cent.

Fashion and leather goods saw a modest organic sales increase of 1 per cent, while perfumes and cosmetics fell 1 per cent.

“Accelerating growth in the second quarter arose in particular from the success of Jonathan Anderson’s first designs for Christian Dior, the remarkable performance of Louis Vuitton’s exceptional new stores in Beijing and Seoul, and Tiffany and Bulgari’s iconic lines. Strong growth at Sephora and the recovery in champagne and cognac also contributed to this excellent momentum,” Arnault added.

Looking ahead, the group said it remains confident in an uncertain geopolitical and economic environment and will maintain a strategy focused on continuously enhancing the desirability of its brands.