LVMH Moët Hennessy Louis Vuitton has reported revenue of €16.7bn ($18.4bn) in the first half of 2015, a rise of 19%, with organic revenue up 6% compared to the same period in 2014. Strong growth was reported in Europe and the US alongside ‘an excellent start to the year for Louis Vuitton.

 

In a statement, LVMH said: “In the second quarter, revenue increased by 23% compared to the same period in 2014. Organic sales growth was 9% marking an increase from the first quarter. Profit from recurring operations was €2.955m ($3.267m) for the first half of 2015, an increase of 15%, to which all the business groups contributed. Group share of net profit amounted to €1.580m ($1.746m)”.

 

The company said that in Selective Retailing, the remarkable performance at Sephora and DFS was still impacted by the currency and geopolitical environment in Asia, with the group as a whole recording organic revenue growth of 5%. On a reported basis, revenue growth was 21% and profit from recurring operations increased by 7%.

 

DFS continued to be impacted by unfavourable currency conditions and the geopolitical environment in Asia, although LVMH said the retailer relied on its ‘unique expertise in travel retail’ to address the more difficult context that persists in Asia.

 

At the same time, Sephora achieved strong growth and continued to gain market share in its key countries, particularly France, the US, Canada and China and continued the expansion of its distribution network.

 

 

The Wines & Spirits business group recorded organic revenue growth of 2%. On a reported basis, revenue growth was 15% and profit from recurring operations increased by 5%. The Champagne business is said to have had a good start to the year, driven by the progress of the prestige vintages, particularly in Europe and Japan.

 

Despite the continued destocking by distributors in China, the second quarter saw a return to organic revenue growth for Hennessy, thanks to the sustained strong performance in the US market. Other spirits, Belvedere and Glenmorangie continue their development.

 

Meanwhile, the Fashion & Leather Goods division recorded organic revenue growth of 5% in the first half of 2015, with accelerated growth in the second quarter. On a reported basis, revenue growth was 18% and profit from recurring operations increased by 12%. Louis Vuitton continued to illustrate its creative momentum across its collections.

 

 

LVMH said: “Leather goods experienced strong growth with the success of models in Monogram and new leather lines. Nicolas Ghesquière’s runway shows in symbolic locations received an enthusiastic welcome. Loro Piana continued its development and benefited from new store openings.

 

“Fendi recorded an excellent performance, in particular in leather goods and accessories. Céline, Givenchy and Kenzo experienced strong growth. Marc Jacobs and Donna Karan continued the repositioning of their collections. Other brands are further strengthening their positions.”

 

By contrast, the Perfumes & Cosmetics business group reported organic revenue growth of 6%. On a reported basis, revenue growth was 17% and profit from recurring operations increased by 22%. Christian Dior’s J’adore and Miss Dior continued to show ‘exceptional strength’ while the launch of a new men’s fragrance will mark the second half of this year.

 

 

Guerlain furthered its progress with the confirmed success of La Petite Robe Noire and the rapid development of Abeille Royale. Benefit, Make Up For Ever and Fresh reinforced their excellent performances.

 

Turning to Watches & Jewelry, this business recorded organic revenue growth of 10%. On a reported basis, revenue growth was 23% and profit from recurring operations increased by 91%.

 

Bvlgari was said to have had an excellent first half driven by the success of its jewelry lines and new watch for women, Lvcea. Hublot showed strong progress, while TAG Heuer continued to refocus on its core offering. A partnership was concluded between TAG Heuer, Google and Intel for the launch of a smartwatch.

 

Bernard Arnault, Chairman and CEO of LVMH, commented: “The excellent results of the first half are witness to the efficiency of our strategy, which relies upon the strength of our brands and a very entrepreneurial style of management.

 

“Building on the first half performances, we face the second half of the year with confidence and count on the quality of our products and the talent of our teams to further strengthen our leadership in the world of high quality products.”