LVMH leather goods segment up 14% in H1

Worldwide
Published:  28 July, 2017

French luxury conglomerate LVMH has recorded revenue of €19.7 billion in the first half of 2017 (+15%), with revenue in the fashion and leather goods category increasing 14% on an organic basis.

Overall organic revenue growth for the Group was 12% in the first half of 2017, compared with the same period in 2016. All geographic areas are reported to continue to progress well, and during the first half of the year, the Group says it benefited from a favourable comparison base, particularly in Asia but also in France, where activity was impacted last year by a decline in tourism.

Profit from recurring operations was €3,640 million for the first half of the year (+23%). Operating margin reached 18.5%, an increase of 1 percentage point. Group share of net profit amounted to € 2,119 million (+24%).

LVMH, however, remains cautious and warns the current trends cannot reasonably be extrapolated for the full year. “In an environment that remains uncertain, we approach the second half of the year with caution. We will remain vigilant and rely on the entrepreneurial spirit and talent of our teams to further increase our leadership in the world of high quality products in 2017”, said Bernard Arnault, Chairman and CEO, LVMH.

An “outstanding momentum” is reported for the Louis Vuitton brand with profitability said to be remaining at an exceptional level. Other brands performing well in the period included Fendi with “an enriched leather goods line” and Loro Piana, which strengthened its presence in Asia with several openings. Overall, revenue in the fashion and leather goods category increased 17% on a reported basis (+14% organic), from €5,885 million in the first half of 2016 to €6,899 million in the first six months of 2017; profit from recurring operations in the same category increased 34% to €2,192 million.

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