LVMH Selective Retailing Division saw solid growth, though DFS continued to perform below 2019 levels.

LVMH Group has released its H124 financial results, which showed revenue of €41.7bn and a group share of net profit amounting to €7.3bn.

Growth in its selective retailing division was primarily driven by Sephora, as DFS struggled, with its business activity remaining below 2019 levels.

Selective retailing also saw the biggest revenue growth (as a percentage) on a like-for-like basis, though DFS saw business activity remain below its 2019 pre-Covid level, with marked differences in tourist traffic between its various destinations.

Profit from recurring operations for Selective Retailing was €785m, up 7% relative to June 30, 2023, and this business group’s operating margin as a percentage of revenue was 9.1%.

LVMH noted while international travel only partially recovered in Europe and flagship destinations Hong Kong and Macao, DFS recorded good performances in Japan and at airports in the United States.

Across its other core categories, the Wines & Spirits business group saw a revenue decline (-9% organic) in H124, and the Watches & Jewellery business group saw a revenue decline (-3% organic) in H124.

However, the Perfumes & Cosmetics business group recorded organic revenue growth of 6% in H124 thanks to the ongoing success of its flagship lines, and the Fashion & Leather Goods business group recorded organic revenue growth of 1% in H124, though profit from recurring operations was down 6%.

Bernard Arnault, Chairman and CEO of LVMH, commented: “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.

Driven as ever by our dual focus on desirability and responsibility, we have continued to work towards achieving the targets set out in our environmental and social action programs.”

LVMH Group revenue for H124 broken down by business group.

In a statement released alongside its H124 results, LVMH pointed to the negative impact of exchange rate fluctuations, particularly on its Fashion & Leather Goods business group, and leaned on strong revenue growth especially in Europe and the US, as well as the promising return of Chinese spend in its Japan.

“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,” added Arnault.

LVMH posited the following outlook for the second half of the 2024 fiscal year:

“In an uncertain geopolitical and economic environment, the Group remains confident and will maintain a strategy focused on continuously enhancing the desirability of its brands, drawing on the exceptional quality of its products and excellence in retail.

Our strategy of focusing on the highest quality across all of our activities, combined with the energy and unparalleled creativity of our teams, will enable us to reinforce the LVMH Group’s global leadership position in luxury goods once again in 2024.”

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