LVMH Selective Retailing up 12% in H1 despite constraints on DFS recovery

By Luke Barras-hill |

LVMH Moët Hennessy Louis Vuitton’s (LVMH) Selective Retailing division posted a 12% rise (+5% reported) in organic revenue in the first half of 2021 year-on-year to €5,085 million/$6,006 million.

However, organic revenue from the division which includes Sephora, Starboard Cruise Services and DFS Group was down 25% versus H1 2019.

Profit from recurring operations nosedived 82% compared with the first half of 2019 but improved in H1 2021 year-on-year to €131 million.

“DFS continued to be impacted by the lack of recovery in international travel to most destinations,” read a statement.

“Following an ambitious renovation programme, faithful to the history of this flagship store and maintaining high environmental standards, the reopening of La Samaritaine on June 23 was an historic success.”

TRAVEL RETAIL ‘HELD BACK’

Group revenue jumped 56% in reported terms (+53% organic) in H1 2021 year-on-year to €28,665 million, spurred by a positive showing in Q2.

Profit from recurring operations in H1 totalled  €7,632 million, with Group share of net profit reaching €5,289 million.

LVMH acknowledged that travel retail and hotel activities are being held back by the ‘limited recovery’ in international travel.

Source: LVMH. Click to enlarge.

 

Reflecting on the ‘excellent half-year’, Bernard Arnault, Chairman and CEO, LVMH said: “Highlights from the first half include the integration of the Maison Tiffany and the inauguration of La Samaritaine after an ambitious renovation programme.

“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.”

Source: LVMH. Click to enlarge.

LVMH says it remains committed to strengthening the attractiveness of its brands by emphasising product qualities and distribution excellence.

“Our strategy of focusing on the highest quality across all our activities, combined with the dynamism and unparalleled creativity of our teams, will enable us to reinforce LVMH’s global leadership position in luxury goods once again in 2021,” added the statement.

An interim dividend of 3 Euros will be paid on 2 December.

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