The French luxury goods group Moët Hennessy Louis Vuitton (LVMH) was able to achieve surprisingly strong growth in sales and earnings in the first half of the 2023 financial year. The current figures, which the company presented on Tuesday evening, exceeded market expectations despite the “continuing economic and geopolitical uncertainties”.
Group sales for the period from January to June amounted to around EUR 42.2 billion, exceeding the corresponding prior-year level by 15 percent. On an organic basis – i.e. adjusted for exchange rate fluctuations and acquisitions – sales grew by 17 percent. According to the company, the significant increase is due to “strong growth in Europe and Asia”.
Only the wine and spirits business is weakening
Almost all Group divisions achieved double-digit growth rates in the first half of the year. In the fashion and leather goods segment, which includes luxury brands such as Louis Vuitton, Christian Dior, Celine, Loro Piana and Loewe, sales increased by 17 percent (+20 percent organically) to EUR 21.2 billion. Perfume and cosmetics grew by 11 percent (+13 percent organically) to EUR 4.03 billion, while watch and jewelry sales increased by 11 percent (+13 percent organically) to EUR 5.43 billion.
The retail division with the chains DFS and Sephora developed most dynamically. Its revenues reached EUR 8.35 billion, exceeding the level of the same period of the previous year by 26 percent (+26 percent organically). Only the demand for wine and spirits weakened: the segment had to accept a decline in sales of four percent (organically -3 percent) to 3.18 billion euros.
The Group is going into the second half of the year “with self-confidence and optimism”.
The result was also significantly higher than in the first six months of the previous year: the operating profit adjusted for special effects rose by 13 percent to 11.6 billion euros. Net income attributable to shareholders even jumped 30 percent to 8.48 billion euros.
In view of the “excellent” current results, CEO Bernard Arnault looked confidently to the coming months. “We enter the second half of the year with confidence and optimism thanks to the strength of our brands, but remain vigilant given the current environment,” he said in a statement.