LVMH sales soar 10 per cent in first half year
LVMH sales grew by 10 per cent in the first half year, to a record €21.8 billion (US$25.57 billion).
Asia and the US posted the strongest growth, according to the company, which did not break down figures in geographic detail.
But the termination of subsidiary DFS Group’s contracts at Hong Kong International Airport at the end of last year took away some of the shine – without that, organic growth would have reached 14 per cent instead of 12 per cent.
Profit from recurring operations was €4.648 billion for the first half, an increase of 28 per cent, with operating margin reaching 21.4 per cent, up 2.9 percentage points.
”The excellent results of the first half of the year attest to the strong desirability of our brands and the effectiveness of our strategy,” said chairman and CEO Bernard Arnault, announcing the figures. “The performance of the first half is even more remarkable given the unfavourable currency environment.”
Driving the LVMH sales growth by category, was the LVMH fashion and leather goods business, which achieved the highest-yet organic growth of 15 per cent and profits from continuing operations up 27 per cent.
The company said highlights of the year included the success of new Christian Dior products, a strong half for Bulgari, rebounding profitability at DFS Group and strong revenue growth from Sephora stores both online and offline.
Arnauld said the company was remaining cautious while monetary and geopolitical uncertainties remain.
“In this context, we will stay vigilant and rely on the talent of our teams and the shared entrepreneurial passion to further increase our leadership in the world of high quality products this year.”
Meanwhile, Louis Vuitton is about to launch apparel lines in India after selling only accessories in the country until now.
Louis Vuitton India has three stores – in Bengaluru’s UB City, Taj Mahal Palace in Mumbai and Emporio in Delhi.
According to the company, the Emporio store would be transformed into L’Appartement to sell men’s and women’s clothing lines this September.
Louis Vuitton is working with two top artists to put together India’s first L’Appartement.