LVMH Moët Hennessy Louis Vuitton recorded revenue of 36.7 billion euros in the first half of 2022, up 28 percent compared to the same period in 2021. Organic revenue growth was 21 percent.
In the second quarter, the company said in a release, revenue increased by 27 percent, while organic revenue growth was 19 percent.
Profit from recurring operations was up 34 percent at 10, 235 million euros. Operating margin reached 27.9 percent of revenue, up 1.3 points and group share of net profit was 6, 532 million euros, up 23 percent compared to the first half of 2021.
Commenting on the first half trading, Bernard Arnault, chairman and CEO of LVMH, said: “LVMH has enjoyed an excellent start to the year, to which all of our business groups contributed. We approach the second half of the year with confidence, but given the current geopolitical and health situation, we will remain vigilant.”
LVMH core luxury labels perform well in H1
The company added that Europe and the United States have been up sharply since the start of the year, while Asia saw a lower level of growth due to the new health restrictions in China.
The fashion & leather goods business group recorded organic revenue growth of 24 percent to 18,136 million euros, while profit from recurring operations was up 33 percent.
The company further said that driven as always by an exceptional creativity and with a major cultural focus, Louis Vuitton had an excellent first half across all its business activities and maintained its profitability at an exceptional level.
Christian Dior continued to enjoy remarkable growth in all its product categories. After three years of renovations, the birthplace of the maison at 30 Avenue Montaigne in Paris reopened. LVMH said Fendi recorded solid growth, driven by the success of the Kim Jones collections.
Celine also saw strong growth resulting from the success of the ready-to-wear and leather goods created by Hedi Slimane, notably with the new line of high-end leather goods for its Triomphe and 16 collections. Loewe continued to show excellent momentum under the impetus of the bold creativity of J.W.Anderson. Loro Piana and Marc Jacobs also enjoyed an excellent first half of the year.
The perfumes & cosmetics business recorded organic revenue growth of 13 percent to 3,618 million euros, while profit from recurring operations was down 1 percent due to its highly selective policy in distribution and promotions. The watches & jewelry business achieved organic revenue growth of 16 percent to 4,909 million euros in the first half of 2022 and segment’s profit from recurring operations was up 26%. In jewelry, Tiffany & Co. enjoyed an excellent half-year, driven by strong momentum in the United States.
In selective retailing, revenue was up 22 percent to 6,630 million euros, while profit from recurring operations was up 181 percent. The company added that Sephora enjoyed an excellent performance with a strong rebound in its in-store activity. Momentum was particularly strong in North America, France and the Middle East. DFS was impacted during the first half by persistent weakness of international travel, notably due to the tightening of health restrictions in China.
LVMH said that an interim dividend of 5 euros will be paid on December 5, 2022.