LVMH enjoys "excellent" first half as revenues and profit rise

LVMH has reported revenue growth of 15% to £36 billion (€42.2 billion) for the first half of 2023, driven by "excellent momentum" at Sephora. 

The luxury group saw revenue increase 26% to £7.1 billion (€8.3 billion) for the selective retailing business, boosted by Sephora - particularly in the UK where its first store opening proved a "huge success".

The perfume and cosmetics business reported revenue up 11% to £3.4 billion (€4 billion), supported by a "highly selective and high-quality distribution policy". Growth was also driven by Christian Dior, Guerlain, Benefit Cosmetics and Fenty Beauty.

The fashion and leather goods business saw revenues rise 17% to £18 billion (€21.1 billion), boosted by Louis Vuitton, Christian Dior, Celine and Loewe.

The watches and jewellery business recorded revenue growth of 11% to £4.6 billion (€5.4 billion), helped by Tiffany & Co, TAG Heuer and Chaumet.

Profit from recurring operations was up 13% to £9.8 billion (€11.5 billion), whilst operating margin reached 27.4% of revenue.

Looking ahead, in an uncertain geopolitical and economic environment, the group said it will maintain a strategy focused on "strengthening the desirability of its brands, by relying on the exceptional quality of its products and the excellence of their distribution".

Bernard Arnault, Chairman and CEO of LVMH, said: “LVMH achieved outstanding results during a six-month period of ongoing economic and geopolitical uncertainty.

"Thanks to the desirability of our brands, we approach the second half of the year with confidence and optimism but will remain vigilant within the current environment and count on the agility and talent of our teams to further strengthen our global leadership position in luxury goods in 2023.”