Companies

Strong first half for LVMH

Jul 26, 2023 France

The luxury group posted a 15% revenue growth and a 30% net profit rise in the first half of 2023, as compared to the same period of 2022, driven by a strong performance in Asia and Europe

“LVMH achieved outstanding results during a six-month period of ongoing economic and geopolitical uncertainty. The strong creative momentum and excellent distribution of our Maisons continued to inspire dreams, as demonstrated by the enthusiastic reception given to Pharrell Williams’ first fashion show for Louis Vuitton as well as the reopening of the New York “Landmark” of Tiffany & Co”, commented Bernard Arnault, Chairman and CEO of LVMH.

First Half Results

In the six months to the 30^th of June, the French-based group recorded a revenue of 42.2 billion euros, up by 15%, on a comparable basis to the same period of last year, driven by a strong performance in Europe and Asia; organic revenue growth was 17% year-over-year.

LVMH noted that all business groups “achieved double-digit organic revenue growth over the half year, except for Wines & Spirits, which faced a particularly high basis of comparison”, and highlighted the “outstanding performance” by the Fashion & Leather Goods segment.

The latter saw its revenue grow by 17% as reported and by 20% on an organic basis in this period to 21.16 billion euros, as compared to the first half of 2022, with the performances of Louis Vuitton, Christian Dior, Celine, Loro Piana and Loewe standing out.

In addition, over the first six months of 2023, the luxury conglomerate's net profit totalled 8.48 billion euros, increasing by 30% from the same period of the previous year. However, there are some signs that point to a weakening momentum in the future, such as the company's first half profit from recurring operations, which rose only by 13% year-over-year to 11.57 billion euros.

Concerning the outlook for the remaining year, Arnault said that “thanks to the desirability of our brands, we approach the second half of the year with confidence and optimism, but will remain vigilant within the current environment and count on the agility and talent of our teams to further strengthen our global leadership position in luxury goods in 2023”.

Image Credits: malemodelscene.net

France Fashion Luxury LVMH Quarter Results Results