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LVMH records robust sales growth in the first half

By Prachi Singh

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Business

Luxury conglomerate LVMH Moët Hennessy Louis Vuitton recorded revenue of 25.1 billion euros (27.9 billion dollars) in the first half of 2019, up 15 percent, while organic sales growth was 12 percent compared to the same period in 2018. The company said, in the second quarter, revenue increased by 15 percent and organic revenue growth was 12 percent. Profit from recurring operations was 5,295 million euros (5,896 million dollars) for the first half, an increase of 14 percent, while group share of net profit amounted to 3,268 million euros (3,639 million dollars), an increase of 9 percent.

Commenting on the first half trading, Bernard Arnault, Chairman and CEO of LVMH, said in a statement: “These results once again illustrate the effectiveness of our strategy and the exceptional desirability of our Maisons, whose products transcend time. Despite buoyant demand, we will continue to manage costs and remain vigilant into the second half of the year.”

LVMH’s fashion segment posts robust growth

The Fashion & Leather Goods business group, LVMH added, recorded organic revenue growth of 18 percent, while profit from recurring operations was up 17 percent with noted brands under the segment including Louis Vuitton, Christian Dior, Fendi, Loewe, Rimowa and Loro Piana reporting sales growth during the period under review.

The Perfumes & Cosmetics business group recorded organic revenue growth of 9 percent, driven by the performance of flagship brands, while profit from recurring operations was up 6 percent.

The Watches & Jewelry business recorded organic revenue growth of 4 percent, driven by jewellery and profit from recurring operations was up 5 percent. The Selective Retailing segment, LVMH said, achieved organic revenue growth of 8 percent and profit from recurring operations was up 17 percent with Sephora recording strong revenue growth. Le Bon Marché reported positive momentum and DFS performed very well in the Venice Galleria and though the brand witnessed a slowdown in demand in Hong Kong and Macao over the past few months, LVMH added that FS’s performance in these markets was good in the first half.

The company further announced that an interim dividend of 2.20 euros (2.45 dollars) will be paid on December 10, 2019.

Picture:Facebook/LVMH

Christian Dior
Fendi
Louis Vuitton
LVMH