LVMH revenues up 15% in the first half

LVMH
Louis Vuitton SS19

Luxury conglomerate LVMH has posted record H1 revenues, up 15% at €25.1bn, aided by “remarkable” performance at flagship brand Louis Vuitton and Christian Dior Couture.

Profit from recurring operations was €5.32bn for the first half of 2019, an increase of 14%. Operating margin reached 21.1%, broadly in-line with the first half of 2018.

Bernard Arnault, Chairman and CEO of LVMH, said the group had “made an excellent start to the year. 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.”

Despite the “buoyant demand” Arnault said the group would continue to keep close control of its costs and was entering the second half “with confidence”.

In the Fashion & Leather Goods division, first half sales were up 21% on a reported basis at €10.4bn and up 18% on an organic basis.

The company said Louis Vuitton had achieved “remarkable growth in all its businesses and in all regions”. Christian Dior’s (where the men’s house is headed by British designer Kim Jones) performance was also described as “remarkable” and the brand opened a brand new store on the Champs Elysees in Paris, while its flagship at Avenue Montaigne undergoes a refurbishment.

Loewe, headed up by Jonathan Anderson, also “had an excellent performance, driven in particular by the success of its new collections”. Meanwhile, Celine, under its new creative chief Hedi Slimane was “beginning to roll out it new concept after its fashion shows in the first half were “very well received”.

Earlier this month the conglomerate announced it had taken a minority stake in British designer Stella McCartney’s sustainable luxury label, just over a year after she parted company with rival group Kering.