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Sephora lifts LVMH revenue as it continues UK expansion

Sophie Smith
24 July 2024

LVMH has delivered revenue of £35 billion (€41.7 billion) in the first half of 2024, thanks to another "exceptional" performance from Sephora and growth across perfume and cosmetics.

The owner of Louis Vuitton, Givenchy, Fenty Beauty, and more saw revenues rise 2% organically but drop 1% on a reported basis amid a challenging geopolitical and economic environment.

Perfume and cosmetics remained one of LVMH's more buoyant businesses, with reported revenue up 3% and organic revenue up 6% to £3.4 billion (€4.1 billion) during the first half.

This was attributed to the group's "innovative momentum and selective distribution strategy", as well as "rapid" growth in fragrances and makeup, and the success of its Maisons’ iconic lines.

Meanwhile, the selective retailing business also reported revenue up 3% and organic revenue up 8% to £7.2 billion (€8.6 billion), with Sephora once again achieving "exceptional" growth.

It comes as the global beauty retailer continues to expand its UK presence, having recently announced plans to open in Birmingham later this year, as well as two new stores in the North East.

Sephora also opened the doors to a new flagship at The Trafford Centre in Manchester in May, marking its debut in the North of England and third location in the UK, following openings at Westfield London and Westfield Stratford City last year.

Despite growth across beauty, LVMH's fashion and leather goods business saw revenues drop 2% to £17.4 billion (€20.7 billion) on a reported basis. Organic sales increased 1%, with the division showing "good resilience" despite a slowdown in the luxury market.

Watches and jewellery also shared reported revenue declines of 5% to £4.2 billion (€5.1 billion), with organic sales down 3%.

Profit from recurring operations reached £8.9 billion (€10.6 billion), exceeding pre-pandemic levels but down 8% in comparison to £9.6 billion (€11.5 billion) in the first half of 2023.

Looking ahead, in an uncertain economic and geopolitical environment, LVMH said it will continue to pursue its strategy focused on the development of its brands, driven by a "sustained policy of innovation and investment as well as by a constant quest for quality in its products, their desirability and their distribution".

Bernard Arnault, Chairman and CEO of LVMH, said: "The results for the first half of the year reflect LVMH’s remarkable resilience, backed by the strength of its Maisons and the responsiveness of its teams in a climate of economic and geopolitical uncertainty.

"While remaining vigilant in the current context, the group approaches the second half of the year with confidence, and will count on the agility and talent of its teams to further strengthen its global leadership position in luxury goods in 2024."

The trading update follows the appointment of Cécile Cabanis as Deputy Finance Director of LVMH. Cabanis will work alongside CFO Jean-Jacques Guiony in preparation for her to succeed him.


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