Excellent first half for LVMH

Organic revenue growth was 12% compared to the same period in 2017. It was up 14% when excluding the impact of the termination of the Hong Kong International Airport concessions at the end of 2017. The United States, Asia and Europe experienced good growth.

In the second quarter, revenue increased by 11% compared to the same period of 2017, a performance in line with the trends of the beginning of the year. Organic revenue growth was 11%.

Profit from recurring operations was 4,648 million euros for the first half of 2018, an increase of 28%. Operating margin reached 21.4%, an increase of 2.9 percentage points. Group share of net profit amounted to 3,004 million euros, an increase of 41%.

The Watches & Jewelry business group recorded organic revenue growth of 16%. Profit from recurring operations was up 46%. Bulgari had an excellent first half and continued to gain market share. This performance was especially notable in jewelry and in the Chinese and American markets. The iconic lines Serpenti, B-Zero 1, Diva and Octo made strong progress. Chaumet unveiled its new high-end jewelry collection. The momentum at TAG Heuer was reflected in the innovations of its flagship collections Carrera, Aquaracer and Formula 1, and a smaller version of its smart watch was launched. Hublot enjoyed strong growth and benefited from the enhanced visibility of the brand as the Official Timekeeper of the FIFA World Cup.

The Wines & Spirits business group recorded organic revenue growth of 7%. Profit from recurring operations increased by 7%. Europe and Japan progressed while the United States was in decline due to a delay in shipments. Hennessy cognac continued to show strong growth in the US market in a tight supply environment; the Chinese market continued to develop rapidly.

The Fashion & Leather Goods business group recorded organic revenue growth of 15%. Profit from recurring operations was up 27%. The remarkable growth at Louis Vuitton continues to be driven by its exceptional creativity, and by the right balance between tradition and modernity, the success of icons and the new creations by Nicolas Ghesquière. Of note during the first half was the arrival of Virgil Abloh, as Menswear Artistic Director, whose debut fashion show was widely commented on across social media.

The Perfumes & Cosmetics business group posted organic revenue growth of 16%. Profit from recurring operations was up 25%.

The Selective Retailing business group posted organic revenue growth of 9% or 15% excluding the closure of its concessions at Hong Kong International Airport. Profit from recurring operations was up 39%.

In the buoyant environment of the beginning of this year, albeit marked by unfavourable exchange rates and geopolitical uncertainties, LVMH will continue to pursue gains in market share through the numerous product launches planned before the end of the year and its geographic expansion in promising markets, while continuing to manage costs.

August 16, 2018