LVMH continues its ascent with an “excellent” first half

The good news is linked at LVMH: after the announcement on Monday of a vast partnership with the Paris Olympic Games in 2024, the group posted Tuesday a net profit of nearly 8.5 billion euros in the first half, up 30% compared to the same period in 2022.

Sales of Bernard Arnault’s group increased by 15% compared to the first half of 2022, to reach 42.2 billion euros, driven by fashion and leather goods (Louis Vuitton, Dior, Celine, etc.), which alone account for half of the turnover, LVMH said in a press release.

On Monday, the group with 75 brands announced that it would become the 6th premium partner of the Paris Olympic Games in 2024. The world number one in luxury thus joins in the club of the biggest contributors the groups Orange, EDF, BPCE, Sanofi and Carrefour, with a contribution of 150 million euros, AFP learned from a source familiar with the matter.

Bernard Arnault welcomed Tuesday the “excellent performance” achieved during the first half of the year by his group and intends to “further strengthen in 2023” LVMH’s lead in the global luxury market.

The group emphasizes the success “in particular of Louis Vuitton, Christian Dior, Celine, Loro Piana, Loewe and all the other brands (fashion and leather goods of the group) which are gaining market share everywhere”.

Pharrell WIlliams greets the public after his first show for Louis Vuitton in Paris, June 20, 2023 (AFP – JULIEN DE ROSA)

The semester was marked at Louis Vuitton by the arrival of the new menswear creative director, Pharrell Williams. His first show in June on the Pont-Neuf in Paris has accumulated more than 1.1 billion views on social networks.

Another division that is in good health, Selective Retailing, saw its sales jump 26% to 8.35 billion euros, thanks in particular to an “exceptional performance” by the chain of consumer stores Sephora, “particularly strong in North America, Europe and the Middle East”. Duty free stores (DFS) are benefiting from the resumption of international travel “and in particular the return of travelers to the flagship destinations of Hong Kong and Macau”.

Sales of Watches and Jewelry also increased, to 5.4 billion euros “thanks in particular to Tiffany, Bulgari and Tag Heuer”.

Those of Wines and spirits (Ruinart, Moët et Chandon, Hennessy, etc.) fell slightly (-4%) to 3.1 billion euros, due in particular to poor sales of Hennessy cognac in the United States.

Geographically, “last year we had a slowdown in China and we were pulled by the United States. This year, it’s a bit the opposite,” said Jean-Jacques Guiony, chief financial officer of LVMH, during a telephone press briefing with press agencies.

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