REPORT LVMH Moët Hennessy Louis Vuitton posted revenue of 16.7 billion euros (18.4 billion dollars) in the first half of 2015, representing an increase of 19 percent. Organic revenue growth was 6 percent compared to the same period in 2014. The group recorded strong growth in Europe and the United States.
In the second quarter, revenue increased by 23percent compared to the same period in 2014. Organic sales growth was 9 percent marking an increase from the first quarter. Profit from recurring operations was 2, 955 million euros (3,269 million dollars) for the first half of 2015, an increase of 15 percent, to which all the business groups contributed. Group share of net profit amounted to 1, 580 million euros (1,748 million dollars).
Elaborating on the first half performance, Bernard Arnault, Chairman and CEO of LVMH, said, “Building on the first half performances, we face the second half of the year with confidence and count on the quality of our products and the talent of our teams to further strengthen our leadership in the world of high quality products.”
The Fashion & Leather Goods business group recorded organic revenue growth of 5 percent, with accelerated growth in the second quarter. On a reported basis, revenue growth was 18 percent and profit from recurring operations increased by 12 percent. Leather goods experienced strong growth with the success of models in Monogram and new leather lines. Loro Piana continued its development and benefited from new store openings and Fendi recorded an excellent performance, in particular in leather goods and accessories. Céline, Givenchy and Kenzo experienced strong growth, while Marc Jacobs and Donna Karan continued the repositioning of their collections.
The Perfumes & Cosmetics business group recorded organic revenue growth of 6 percent. On a reported basis, revenue growth was 17 percent and profit from recurring operations increased by 22 percent. Demonstrating remarkable momentum in their competitive environment, LVMH brands gained market share. Christian Dior’s iconic lines J’adore and Miss Dior continued to show their strength. The launch of a new men’s fragrance will mark the second half of the year.
In the first half of 2015, the Watches & Jewelry business group recorded organic revenue growth of 10 percent and on a reported basis, revenue growth was 23percent and profit from recurring operations increased by 91 percent. Bvlgari had an excellent first half driven by the success of its iconic jewelry lines and its new watch for women, Lvcea. Hublot showed strong progress while TAG Heuer continued to refocus on its core offering. A partnership was concluded between TAG Heuer, Google and Intel for the launch of a smartwatch.
The Selective Retailing business group recorded organic revenue growth of 5 percent. On a reported basis, revenue growth was 21percent and profit from recurring operations increased by 7 percent. Sephora achieved strong growth and continued to gain market share in its key countries, particularly France, the United States, Canada and China and continued the expansion of its distribution network. It also increased its lead in the development of a multichannel experience for its clients through its rapid increase in online sales and numerous digital initiatives.
Despite the context of economic and currency uncertainties, LVMH expects to continue gaining market on the back of multiple product launches planned before the end of the year along with geographic expansion in promising markets. An interim dividend of 1.35 euro (1.49 dollars) will be paid on December 3, 2015.