LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of €13.7 billion in the first half 2013, an increase of 6%. Organic revenue growth was 8% compared to the same period in 2012, which itself saw strong growth. The luxury conglomerate continued to experience good momentum in the US and Asia, and continues to grow in Europe in a more difficult economic environment. With organic growth of 9%, the second quarter showed some acceleration compared to the first quarter. Profit from recurring operations for the first half of 2013 rose to €2 712 million, an increase of 2% compared to the same period in 2012.
“The performance of LVMH in the first half, once again, demonstrates the exceptional appeal of our brands, the attraction of our high quality artisanal products and the relevance of our strategy. Innovation, extreme quality, strong distribution and savoir-faire in all of our businesses reinforce our Maisons. Loro Piana, with whom we share the same values of family and craftsmanship, will fit harmoniously within this dynamic. It is with confidence that we approach the second half of the year and rely on the creativity and quality of our products, as well as the effectiveness of our teams, to pursue further market share gains in our traditional markets as well as in high potential emerging territories,” commented Bernard Arnault, Chairman and CEO of LVMH.
The good performance in Wine & Spirits was overshadowed by a weaker performance in LVMH’s luxury watch sector.
In the first half of 2013, the Watches & Jewelry business group recorded organic revenue growth of 1%. Profit from
recurring operations decreased by 2%.
“The strategy of moving further upmarket continued with the goal of enhancing the attractiveness of our brands to our customers. The performance in own stores was excellent thanks to the quality and creativity of our new products as well as the strength of iconic lines, particularly in jewelry. This was offset by restrained purchasing by watch retailers and the voluntary closure of certain multi-brand points of sale, which explain this lower first half growth. We continue to invest in strengthening the quality of our own distribution and the control over our watchmaking and jewelry production,” explained LVMH in the official statement.
The Fashion and Leather Goods business group recorded organic revenue growth of 5% in the first half of 2013. Profit from recurring operations was at a comparable level to that achieved in first half of 2012. These results demonstrate the success of both the very qualitative development of Louis Vuitton and the strategy to strengthen the production of other brands as well as the quality of their distribution. Louis Vuitton continues to develop well thanks to its boundless creativity and its excellent distribution network. Leatherlines progressed strongly. The opening of two new Maisons in Venice and Munich took place in the first six months of the year. Fendi has developed its outstanding savoir-faire, notably in leather. Céline recorded steady growth and accelerated the pace of expansion and renovation of its store network.
The Perfumes & Cosmetics business group recorded organic revenue growth of 6%. Profit from recurring operations was up 2% compared to the first half of 2012. Innovation and market share gains were both important features of the first half of 2013. Parfums Christian Dior maintained good momentum, supported by its perfumes, including Miss Dior and J’ Adore with Voile de Parfum. The makeup segment, with their privileged connections to couture, made significant progress. Guerlain benefited from the continuing success of La Petite Robe Noire. Parfums Givenchy registered good progress in its makeup line. Benefit and Fresh experienced rapid international development.