Good results for LVMH in the first half of the year despite the prevailing environment

Highlights of the first half of 2024 included the following:

– Continued organic revenue growth.

– Substantial negative impact of exchange rate fluctuations, particularly on Fashion & Leather Goods.

– Growth in revenue in Europe and the United States, exceptional growth in Japan arising in particular from purchases made by Chinese travelers.

– Performance of Wines & Spirits reflecting the ongoing normalization of demand that began in 2023.

– Good resilience in Fashion & Leather Goods, which saw its operating margin remain at an exceptional level, especially for flagship brands Louis Vuitton and Christian Dior.

– Rapid growth in fragrances and makeup, and ongoing success of our Maisons’ iconic lines.

– Powerful creative momentum at all the Watches & Jewelry Maisons, and sustained investments in communications and in renovating stores.

– Exceptional performance by Sephora, which consolidated its position as world leader in beauty retail.

– Significant increase in operating free cash flow, which came to more than €3 billion.

Financial highlights

Revenue by business group changed as follows:

Profit from recurring operations by business group changed as follows:

The Wines & Spirits business group saw a revenue decline (-9% organic) in the first half of 2024. Profit from recurring operations was down 26%. Champagne was down, reflecting the ongoing normalization of post-Covid demand, but remained significantly higher than in 2019. Moreover, the beginning of the year was compared to a good first half of 2023. Hennessy cognac was held back by weak local demand in the Chinese market, while the United States saw a return to growth in sales volumes in the second quarter, in a market that remained cautious. In Provence rosé wines, Château d’Esclans stepped up its international expansion while the prestigious Minuty estate was consolidated for the first time in the accounts.

The Fashion & Leather Goods business group recorded organic revenue growth of 1% in the first half of 2024. Profit from recurring operations was down 6%. The operating margin remained at historically high levels. Louis Vuitton had a good start to the year, once again driven by its successful high-quality strategy. Nicolas Ghesquière’s Fall/Winter fashion show was the opportunity to celebrate ten years of his visionary designs at the Maison. Pharrell Williams celebrated Louis Vuitton’s spirit of travel at his latest fashion show, entitled “The World is Yours”, held at UNESCO’s headquarters in Paris. The Maison unveiled the latest chapter of its iconic Core Values campaign, featuring tennis champions Roger Federer and Rafael Nadal. Christian Dior continued to show remarkable creative momentum, driven by the desirability of collections designed by Maria Grazia Chiuri and Kim Jones, whose fashion shows attracted a record number of viewers. The show presenting the 2025 Women’s Cruise collection at Drummond Castle in Scotland, showcasing traditional Scottish craftsmanship, received an extraordinary welcome. The Diorama high jewelry collection presented in Florence showcased Victoire de Castellane’s exquisite craftsmanship. The opening in Geneva of an exceptional store designed by architect Christian de Portzamparc was a highlight of the half-year period. Following the success of the leather goods Triomphe line designed by Hedi Slimane, Celine benefited from growing demand for its accessories. Loewe launched its first major exhibition in Shanghai, commissioned by Jonathan Anderson, as a tribute to the Maison’s Spanish heritage and its commitment to craftsmanship. Fendi launched the Pequin line, reinterpreting the Maison’s signature stripe. Loro Piana and Rimowa confirmed their excellent momentum. Berluti experienced a good start to the year.

Perfumes & Cosmetics: Solid momentum in fragrances and makeup; selective distribution strategy maintained

The Perfumes & Cosmetics business group recorded organic revenue growth of 6% in the first half of 2024 thanks to the ongoing success of its flagship lines, combined with powerful innovative momentum and a selective distribution policy. Profit from recurring operations remained stable. Christian Dior turned in a solid performance in all product categories and reinforced its leadership position in its strategic markets. Sauvage confirmed its position as the world’s leading fragrance, while the Maison’s iconic women’s perfume J’adore saw ongoing success. The new Miss Dior Parfum edition achieved strong growth. Makeup and skincare also contributed to the Maison’s good results, in particular Rouge Dior and Capture Totale. Guerlain enjoyed the strong performance of its fragrance innovations, in particular Néroli Plein Sud in its L’Art et la Matière collection of exceptional fragrances. Givenchy continued to see growth, driven by its L’Interdit fragrance. Benefit added new brow products to its Precisely, My Brow collection while Fenty Beauty launched a new range of haircare products and expanded its retail presence in China.

Watches & Jewelry: Sustained innovation in jewelry and watches; ongoing store renovation program, in particular at Tiffany & Co.

The Watches & Jewelry business group saw a revenue decline (-3% organic) in the first half of 2024. Profit from recurring operations was down 19%, heavily affected by exchange rate fluctuations. Tiffany & Co. continued to showcase its iconic lines through initiatives including a new campaign that received an excellent welcome. The new Tiffany Titan by Pharrell Williams collection generated an exceptional level of interest. Céleste – the 2024 Blue Book high jewelry line, unveiled in Beverly Hills in May – drew inspiration from the boundless imagination of Jean Schlumberger. Bulgari celebrated its 140th anniversary with the “Eternally Reborn” campaign, and presented the new Aeterna high jewelry collection in Rome, which achieved record-breaking revenue. Chaumet unveiled the medals for the Paris 2024 Olympic and Paralympic Games, created by its design studio. In watches, TAG Heuer strengthened its ties with sports, particularly motor sports with the successful relaunch of its historic Formula 1 collection. Hublot reaffirmed its pioneering role in the art world with a pocket watch designed in collaboration with Daniel Arsham. LVMH Watch Week – now a leading event on the international watch scene – was a major success. LVMH announced the acquisition of prestigious high-end Swiss clock manufacturer L’Epée 1839.

In Selective Retailing, organic revenue growth was 8% in the first half of 2024. Profit from recurring operations was up 7%. Sephora achieved remarkable growth and continued to gain market share, reaffirming the brand’s strength and the powerful draw of its unique approach within the prestige beauty market, as well as its position as the world’s leading fragrance and cosmetics retailer. North America, Europe and the Middle East continued to see strong growth. DFS saw business activity remain below its 2019 pre-Covid level, with marked differences in tourist traffic between its various destinations. Le Bon Marché continued to achieve growth, driven by the department store’s differentiation strategy, with its continuously renewed selection of products and services and unique slate of events.

2024 Outlook

In an uncertain geopolitical and economic environment, the Group remains confident and will maintain a strategy focused on continuously enhancing the desirability of its brands, drawing on the exceptional quality of its products and excellence in retail.

Our strategy of focusing on the highest quality across all of our activities, combined with the energy and unparalleled creativity of our teams, will enable us to reinforce the LVMH Group’s global leadership position in luxury goods once again in 2024.

An interim dividend of €5.50 will be paid on Wednesday, December 4, 2024.