LVMH reports revenues of €28.7 billion
French luxury conglomerate LVMH has reported first half revenues of €28.7 billion, a rise of 56% compared with the same period in 2020.
The first half of 2021 confirmed the return to growth in business activity begun in the second half of 2020, after the first half of 2020 saw LVMH’s operations severely disrupted by the COVID-19 pandemic and the measures taken by various governments, significantly affecting the previous financial statement.
On a constant consolidation scope and currency basis, revenue increased by 53%. Compared with the first half of 2019, revenue was up by 14% based on published figures.
The impact of changes in scope arising from the consolidation of Tiffany, Belmond and Château d’Esclans contributed 8 points to growth, and was partially offset by a negative 5-point exchange rate impact. On a constant consolidation scope and currency basis, revenue increased by 11%.
Revenue for fashion and leather goods performed the strongest, surging 81% in terms of organic growth and 74% based on published figures. The United States and Asia delivered the highest, whilst Europe and Japan recorded more limited growth.
Revenue for perfumes and cosmetics increased by 37% in terms of organic growth and by 31% based on published figures, with all the brands showing a solid recovery and delivering a strong performance.
Revenue for watches and jewellery increased by 71% in terms of organic growth. All the business group’s brands showed positive performance, with Asia and the United States were the best-performing regions.
Net profit reached to €5.28 billion, up 62% compared with 2019 and 10 times above the €522 million reported in 2020.
Bernard Arnault, Chairman and CEO of LVMH, said: “LVMH has enjoyed an excellent half-year and is reaping the benefits of having continued to innovate and invest in its businesses throughout the pandemic despite being in the midst of a global crisis. The creativity, the high-quality and enduring nature of our products and the sense of responsibility that drives us, have been critical in enabling us to successfully withstand the effects of the pandemic; they will remain firmly embedded in all our Maisons, thereby ensuring their continued desirability.
“Highlights from the first half include the integration of the Maison Tiffany and the inauguration of La Samaritaine after an ambitious renovation program. Within the current context, as we emerge from the health crisis and see a recovery in the global economy, I believe that LVMH is in an excellent position to continue to grow and further strengthen our lead in the global luxury market in 2021. As France is the principal recruitment area and the country of origin of many of our products, the growth of LVMH benefits the country today, and even more tomorrow, with all our Maisons being proud to make their contributions.”