2023-07-25 16:21:00
The world number one in luxury LVMH announced on Tuesday that it had made a net profit of 8.48 billion euros (nearly 8.1 billion francs) in the first half, up 30% compared to the same period in 2022, thus continuing its ascent.
Sales of Bernard Arnault’s group increased between January and June by 15% to reach 42.2 billion euros, driven by the flagship Fashion and Leather Goods division (Louis Vuitton, Dior, Celine, etc.), which alone generates 21 billion euros in turnover (+ 17%), LVMH said in a press release.
“LVMH achieved an excellent performance during a semester still marked by economic and geopolitical uncertainties,” said Bernard Arnault, quoted in the press release.
The CEO of LVMH intends to “further strengthen in 2023” the group’s lead in the global luxury market.
Current operating profit for the first half increased by 13% to 11.57 billion euros. The current operating margin was 27.4%.
The group underlines “a remarkable performance” of the Fashion and leather goods activity, “in particular of Louis Vuitton, Christian Dior, Celine, Loro Piana, Loewe and all the other brands which are gaining market share everywhere”. LVMH does not detail the financial performance of its brands.
The activity of the Selective Retailing division jumped 26% to 8.35 billion euros, with in particular an “exceptional performance” of the chain of general public stores Sephora, “particularly strong in North America, in Europe and in the Middle East”. Duty free (DFS) stores are benefiting from the resumption of international travel ‘and in particular the return of travelers to the flagship destinations of Hong Kong and Macau’.
Sales of Watches and Jewelry were up 11% to 5.4 billion euros thanks to “strong creative momentum, in particular for Tiffany, Bulgari and Tag Heuer”.
Only the Wines and Spirits division (Ruinart, Moët and Chandon, Hennessy, etc.) saw its sales fall by 4% to 3.1 billion euros, due in particular to Hennessy cognac, which suffered from the “economic environment in the United States” unfavorable and “the level of stock still high at resellers”.
Geographically, ‘last year we had a slowdown in China and we were pulled by the United States. This year, it’s a bit the opposite, ‘said Jean-Jacques Guiony, chief financial officer of LVMH, during a telephone press briefing with press agencies. Asia excluding Japan represents 33% of first-half sales, the United States 24% and Europe 23%.
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