LVMH Moët Hennessy Louis Vuitton, a leading luxury products group, recorded revenue of 25.1 billion euros in the first half of 2019, up 15%. Organic sales growth was 12% compared to the same period in 2018.
“LVMH has made an excellent start to the year,” said Bernard Arnault, chairman and CEO of LVMH. “These results once again illustrate the effectiveness of our strategy and the exceptional desirability of our Maisons, whose products transcend time. Their constant demand for quality and their consistently refreshed creativity are key to LVMH’s success, always guided by a long-term vision, combining exemplarity and responsibility in all the company’s actions.”
In the second quarter, revenue increased by 15% compared to the same period in 2018. Organic revenue growth was 12%, a performance in line with the trends of the beginning of the year. The United States, Asia and Europe saw good growth with, in particular, a rebound in France in the second quarter.
Profit from recurring operations was € 5 295 million for the first half of 2019, an increase of 14%. Operating margin reached 21.1%, broadly in-line with the first half of 2018. Group share of net profit amounted to € 3 268 million, an increase of 9%.
“Despite buoyant demand, we will continue to manage costs and remain vigilant into the second half of the year,” Arnault said. “We are therefore entering the second half of the year with confidence and count on the talent of our teams and their shared entrepreneurial passion to further increase, once again in 2019, our leadership in the world of high-quality products.”
In particular, The Fashion & Leather Goods business group recorded organic revenue growth of 18%. Profit from recurring operations was up 17%. Louis Vuitton achieved remarkable growth in all its businesses and in all regions.
In the buoyant environment of the beginning of this year, albeit marked by geopolitical uncertainties, LVMH stated it will continue to pursue gains in market share through the numerous product launches planned before the end of the year and its geographic expansion in promising markets, while continuing to manage costs.
Highlights of the first half of 2019 include:
- Further double-digit increases in revenue and profit from recurring operations
- Strong growth in Asia, the United States and Europe, particularly in France, which saw a rebound in the second quarter
- Good start to the year for Wines and Spirits
- Remarkable momentum at Louis Vuitton where profitability remains at an exceptional level
- Remarkable performance of Christian Dior Couture
- Rapid progress of LVMH’s perfumes and cosmetics flagship brands
- Good progress in jewelry, in particular for Bvlgari
- Sephora’s strong revenue growth in stores and online
- Solid progress of DFS, particularly in Europe, benefiting from the rise in international travelers
- The completion in April of the acquisition of the Belmond hotel group, whose activity will be consolidated in the third quarter of 2019
- Announcement of the agreement with Stella McCartney House
- Operating free cash flow of €1.7 billion
- Net debt to equity ratio (“gearing”) of 24.5% as at the end of June 2019
