LVMH posts strong first half

Worldwide
Published:  12 September, 2019
Hublot

The French luxury conglomerate has recorded revenue of €25.1 billion in the first half of 2019, up 15%. Organic sales growth was 12% compared with the same period in 2018.

In the second quarter, LVMH’s revenue increased 15% year-on-year, while organic revenue growth was 12%, a performance in line with the trends of the beginning of the year according to the Group. The U.S., Asia and Europe are said to have observed good growth with, in particular, a rebound in France in the second quarter. Profit from recurring operations totalled €5,295 million for the first half of 2019 (+14%) and operating margin reached 21.1%, broadly in line with the first half of 2018. Group share of net profit amounted to €3,268 million, up 9%. “Despite buoyant demand, we will continue to manage costs and remain vigilant into the second half of the year”, said Bernard Arnault, Chairman and CEO, LVMH.

The Fashion and Leather Goods business group recorded organic revenue growth of 18%. Profit from recurring operations increased 17%, with the Louis Vuitton brand achieving remarkable growth in all its businesses and in all regions. Christian Dior is also reported to have had a remarkable performance during the first half, while Loro Piana recorded steady growth with, in particular, the success of a new personalised shoe service and a temporary boutique in New York. According to the Group, Loewe had an excellent performance, driven in particular by the success of its new collections. The Watches & Jewellery business recorded organic revenue growth of 4%, driven by jewellery and profit from recurring operations for this division was up 5% in the period. TAG Heuer is said to have continued to focus on its flagship lines, while Hublot continued to actively grow and develop its store network.