LVMH Moët Hennessy Louis Vuitton, the world’s leading high-quality products group, reported a significant boost in revenue for the first half of 2023, reaching €42.2 billion, representing an impressive 15% increase. The organic revenue growth also saw a substantial rise of 17% compared to the same period in 2022. During this six-month period, all business groups, except for Wines & Spirits, achieved double-digit organic revenue growth, attributing the latter’s performance to a high basis of comparison.
The second quarter of 2023 mirrored the strong trend seen in the first quarter, with an organic revenue growth of 17%.
Profit from recurring operations for the first half of 2023 reached €11,574 million, a notable 13% increase. The operating margin rose to 27.4% of revenue, and the group’s share of net profit surged by 30% to €8,481 million.
Bernard Arnault, Chairman and CEO of LVMH, expressed his satisfaction with the outstanding results, highlighting the exceptional performance amidst ongoing economic and geopolitical uncertainties. He emphasized the company’s dedication to its environmental, social, and societal commitments, particularly the ambitious water sobriety plan aiming to reduce overall water consumption by 30% by 2030. Arnault expressed confidence and optimism for the second half of 2023, attributing it to the desirability of their brands and the talent of their teams, while also remaining vigilant within the current environment.
Key Highlights of the First Half of 2023:
Excellent Performance Despite Disrupted Environment: LVMH showcased remarkable growth despite facing a disrupted global environment, reaffirming its market leadership in luxury goods.
Strong Revenue Growth Across Business Groups: With the exception of Wines & Spirits, all business groups experienced significant revenue growth, driven by exceptional creative momentum and excellent distribution.
Solid Performance in Europe and Asia: The company witnessed robust business growth in Europe and Asia, reflecting the global appeal of their brands.
Fashion & Leather Goods Stand Out: The Fashion & Leather Goods business group achieved remarkable organic revenue growth of 20%, thanks to outstanding performances by brands like Louis Vuitton, Christian Dior, Celine, Loro Piana, Loewe, and Marc Jacobs.
Perfumes & Cosmetics Thrive: The Perfumes & Cosmetics business group recorded a strong organic revenue growth of 13%, driven by innovative products and a selective distribution policy.
Watches & Jewelry Shine: The Watches & Jewelry business group achieved organic revenue growth of 13%, with strong performance in jewelry and sustained innovation in watchmaking.
Selective Retailing Soars: Selective Retailing saw organic revenue growth of 26%, with Sephora performing exceptionally well and DFS benefiting from the recovery in international travel.
As LVMH looks forward to the rest of 2023, the company remains committed to its strategy of focusing on the highest quality, unparalleled creativity, and strengthening the desirability of its brands. With these foundations, LVMH is set to reinforce its global leadership position in the luxury goods market once again.
WHERE FASHION GETS CREATIVE
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