Profit from recurring operations for the first half of 2014 was 2, 576 million euros (3,468.8 million dollars) and current operating margin reached 18 percent. Group share of net profit amounted to 1, 509 million euros (2,031.8 million dollars).
Commenting on the financial development in H1, Bernard Arnault, Chairman and CEO of LVMH, said, “The results of the first half demonstrate LVMH’s excellent resilience, thanks to the strength of its brands and the responsiveness of its organization in a climate of economic and financial uncertainties. The first half of the year also witnessed the smooth integration of Loro Piana into the Group. Following the first half’s good resilience, it is with confidence that we approach the second half of the year.”
The Wines & Spirits division recorded a decrease in organic revenue of 1 percent in the first half of 2014. Fashion & Leather Goods group recorded organic revenue growth of 4 percent in the first half of 2014. Profit from recurring operations was 1, 487 million euros (2,002.2 million dollars). Loro Piana experienced an excellent start to the year. Louis Vuitton continues its strong creative momentum with new artistic director, Nicolas Ghesquière, receiving an enthusiastic response to his first show. The innovations in leather goods are seeing strong success. Fendi benefited from the focus on its iconic bags, for which sales progressed strongly. Céline’s growth continues to be driven by the success of its leather goods and the rapid development of footwear. Several Céline flagship stores were opened around the world, particularly in London, Tokyo and Paris. Other brands, such as Givenchy, Berluti and Kenzo, continued to strengthen their positions.
Perfumes & Cosmetics recorded organic revenue growth of 6 percent. Parfums Christian Dior continued to benefit from the growth of its iconic perfumes J’Adore and Dior Homme. The make-up segment also experienced sustained growth. Guerlain continues its progress with the ongoing success of La Petite Robe Noire and the rapid development of Orchidée Impériale and Abeille Royale. Benefit, Make Up For Ever and Fresh confirmed their excellent performance.
In the first half of 2014, the Watches & Jewelry business group recorded organic revenue growth of 3 percent. Bulgari benefited from positive momentum in jewelry. TAG Heuer focused on the development of its iconic lines. The Selective Retailing business group recorded organic revenue growth of 9 percent. Sephora continued its growth in all regions, with particularly remarkable performance in North America, the Middle East and Asia. Online sales grew significantly. Sephora is proceeding with the expansion of its store network and has just opened its first flagship store in Indonesia.
Despite an uncertain European economic environment, LVMH will continue to gain market share owing to the numerous product launches planned before the end of the year and its geographic expansion in promising markets. An interim dividend of 1.25 euros (1.68 dollars) will be paid on December 4, 2014.