With a sales figure of over 42.2 billion euros, the luxury leader, LVMH, continues to demonstrate impressive growth. In the first half of 2023, all sectors within the company progressed except for the Wines and Spirits segment. However, there was a notable 30% increase in net profit. The announcement of LVMH’s partnership with the 2024 Olympic and Paralympic Games coincided with the unveiling of their outstanding half-year performance.
The French group experienced attractive consumption rates in Europe and Asia, resulting in sales of 42.2 billion euros for the first six months of the year. This represents a significant 15% increase compared to the same period in 2022. Such impressive figures allowed the company to boost its net profit by a staggering 30%, totaling nearly 8.5 billion euros. LVMH achieved a current operating margin of 27.4% of sales. The second quarter closed with sales of 21.2 billion euros, adding to the 21 billion euros generated in the first quarter of 2023.
LVMH’s CEO, Bernard Arnault, emphasized the company’s commitment to environmental, social, and societal responsibility. This commitment is demonstrated through initiatives like a water sobriety program, aiming to reduce overall water consumption by 30% before 2030.
While the Wines and Spirits segment experienced a decline in turnover, other sectors thrived. The Fashion and Leather Goods activities generated sales of approximately 21.2 billion euros, indicating a 17% increase in published data. This growth was primarily driven by popular brands like Louis Vuitton, Christian Dior, Celine, Loro Piana, Loewe, and Marc Jacobs. Marc Jacobs notably became the most popular brand on Lyst during the second quarter of 2023.
The Perfumes and Cosmetics segment witnessed an 11% increase in sales, totaling 4 billion euros. LVMH attributes this growth to a combination of innovative initiatives and a highly selective distribution policy. Christian Dior’s beauty department stood out with strong performance from fragrances such as Sauvage, J’adore, and Miss Dior.
The Watches and Jewelry sector also experienced positive growth of 11%, generating 5.4 billion euros in sales. All jewelry brands within the LVMH portfolio contributed to this increase, while the watchmaking sector showcased new innovations during events like LVMH Watch Week and Watches & Wonders.
LVMH’s Selective Distribution, which includes well-known entities like La Samaritaine, Le Bon Marché, and Sephora, reported a 26% sales increase in the first half of the year, reaching 8.3 billion euros.
However, the Wines and Spirits department was the only segment to witness a decrease in turnover. With sales figures of 3.2 billion euros, this activity experienced a 4% decline in published data. Despite increased sales in champagne brands, the decreased demand for Hennessy impacted the overall performance.
Useful Links:
1. LVMH Official Website
2. LVMH Sustainability Initiatives
