LVMH delivers strong first half 2017, cautious outlook for rest of year

logo-lvmhLVMH Moët Hennessy Louis Vuitton reported an excellent first half, with double-digit increases in revenue and profit from recurring operations and good growth in Europe, Asia and the United States

The luxury products group recorded revenue of €19.7 billion, an increase of 15% over 1H 2016, and organic revenue growth was 12%. All geographic areas continue to progress well, said the company.

Profit from recurring operations was €3 640 million for the first half of 2017, an increase of 23%.

 

The Selective Retailing business group was right in line, posting organic revenue growth of 12%. On a reported basis, sales growth was 15% and profit from recurring operations was up 8%, with DFS experiencing better momentum in Asia, while the T Galleria, which opened in 2016 in Cambodia and Italy, continued to develop.

LVMH’s other retailing business, Sephora, continued to make progress and reinforced its omni-channel strategy.

“LVMH has enjoyed an excellent first half, to which all our businesses contributed,” commented Bernard Arnault, Chairman and CEO of LVMH, in a statement.

Despite the strong results, Arnault is cautious about the rest of the 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,” he said.

 

Highlights of the other groups include:

Wines & Spirits: good start to the year with solid growth in the United States, and improved momentum in China

Fashion & Leather Goods: good creative momentum at Louis Vuitton and further strengthening of other brands, with recorded organic revenue growth of 14%. On a reported basis, revenue increased 17% and profit from recurring operations was up 34%.

The Perfumes & Cosmetics business group posted organic revenue growth of 12%, reported revenue growth of 14% and profit from recurring operations was up 7%. Christian Dior showed strong growth momentum, Guerlain enjoyed a successful launch of its new perfume, Mon Guerlain, represented by Angelina Jolie, and Parfums Givenchy experienced rapid growth in makeup, especially its line of lipsticks. Benefit continued to roll out its Brow Collection.

The Watches & Jewelry business group recorded organic revenue growth of 13%. On a reported basis, revenue growth was 14% and profit from recurring operations was up 14%, with good growth at Bvlgari and an excellent response to TAG Heuer’s new products.

 

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