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Fashion & leather goods segment drives strong sales and profit growth at LVMH

By Prachi Singh

27 Jul 2021

Business

Image: Louis Vuitton, Facebook

LVMH Moët Hennessy Louis Vuitton recorded revenue of 28.7 billion euros in the first half of 2021, up 56 percent compared to the same period in 2020.

The company said in a statement that organic revenue growth was 53 percent compared to 2020 and 11 percent compared to 2019 reflecting accelerated growth in the second quarter, which saw organic revenue increase by 14 percent or 8 percent in the first quarter.

Commenting on the first half trading, Bernard Arnault, chairman and CEO of LVMH, said: “LVMH has enjoyed an excellent half-year and is reaping the benefits of having continued to innovate and invest in its businesses throughout the pandemic despite being in the midst of a global crisis.”

LVMH first half profit increases 44 percent

The company’s fashion & leather goods segment achieved record levels of revenue with organic growth of 81 percent compared to 2020 and 38 percent compared to 2019.

Profit from recurring operations was 7,632 million euros for the first half, up 44 percent compared to the first half of 2019 and more than four times higher than that of 2020. Operating margin reached 26.6 percent, up 5.5 points compared to 2019.

LVMH fashion & leather goods segment posts strong sales and profit growth

Profit from recurring operations for the fashion & leather goods business group stood at 5,660 million euros for the first half, more than three times that of 2020, and up 74 percent compared to 2019. Group share of net profit amounted to 5,289 million euros, up 62 percent compared to 2019 and 10 times higher than 2020.

The fashion & leather goods business group recorded organic revenue growth of 81 percent to 13, 863 million euros compared to the same period of 2020. Organic revenue growth compared to the first half of 2019 was 38 percent.

The perfumes & cosmetics business group recorded organic revenue growth of 37 percent to 3,025 million euros in the first half compared to the same period of 2020. Organic revenue was down 3 percent compared to the first half of 2019. Segment’s profit from recurring operations was up 1 percent compared to the first half of 2019.

The company’s watches & jewelry business group recorded organic revenue growth of 71 percent to 4,023 million euros compared to the same period in 2020 and 5 percent compared to that in 2019, excluding Tiffany. Profit from recurring operations was up 122 percent compared to the first half of 2019 and 27 percent excluding the effect of the integration of Tiffany.

In selective retailing, organic revenue was up 12 percent to 5,085 million euros compared to the first half of 2020 and down 25 percent compared to the first half of 2019. Profit from recurring operations was once again positive but was down 82 percent compared to the first half of 2019.

The company added that an interim dividend of 3 euros will be paid on December 2, 2021.