LVMH hails "remarkable resilience" amid challenging geopolitical and economic environment

LVMH has delivered revenue of £35 billion (€41.7 billion) in the first half of 2024, up 2% organically but down 1% on a reported basis, as the geopolitical and economic environment remained "uncertain".

The company's fashion and leather goods business saw revenues drop 2% to £17.4 billion (€20.7 billion) on a reported basis. Organic sales increased 1%, with the division showing "good resilience" despite a slowdown in the luxury market.

Watches and jewellery shared reported revenue declines of 5% to £4.2 billion (€5.1 billion), with organic sales down 3%.

The perfumes and cosmetics business remained more buoyant, however, with reported revenue up 3% and organic revenue up 6% to £3.4 billion (€4.1 billion) during the first half.

This was attributed to the group's "innovative momentum and selective distribution strategy", as well as "rapid" growth in fragrances and makeup, and the success of its Maisons’ iconic lines.

Meanwhile, the selective retailing business also reported revenue up 3% and organic revenue up 8% to £7.2 billion (€8.6 billion), with Sephora once again achieving "exceptional" growth.

Profit from recurring operations reached £8.9 billion (€10.6 billion), exceeding pre-pandemic levels but down 8% in comparison to £9.6 billion (€11.5 billion) in the first half of 2023.

Looking ahead, in an uncertain economic and geopolitical environment, LVMH said it remains "confident" and will continue to pursue its strategy focused on the development of its brands, driven by a "sustained policy of innovation and investment as well as by a constant quest for quality in its products, their desirability and their distribution".

Bernard Arnault, Chairman and CEO of LVMH, said: "The results for the first half of the year reflect LVMH’s remarkable resilience, backed by the strength of its Maisons and the responsiveness of its teams in a climate of economic and geopolitical uncertainty.

"While remaining vigilant in the current context, the group approaches the second half of the year with confidence, and will count on the agility and talent of its teams to further strengthen its global leadership position in luxury goods in 2024."

The trading update follows the appointment of Cécile Cabanis as Deputy Finance Director of LVMH. Cabanis will work alongside CFO Jean-Jacques Guiony in preparation for her to succeed him.