LVMH toasts ‘excellent’ H1 with DFS Group returning to profitability

By Kristiane Sherry |

An illustration of the facade of T Galleria by DFS, Queenstown. Part of LVMH

An illustration of the facade of T Galleria by DFS, Queenstown. The travel retailer has returned to growth following the pandemic, LVMH’s H1 2023 results reveal.

Luxury goods conglomerate LVMH Moët Hennessy Louis Vuitton saw sales climb to €42.2 billion for the first half of 2023, representing organic revenue growth of 17%.

Profit from recurring operations across the group rose 13% to €11,574 million. Operating margin stood at 27.4% of revenue, while group share of net profit increased 30% to €8,481 million.

All business groups bar Wine & Spirits achieved double-digit growth over the period. 

Travel retailer DFS Group sits within the Selective Retailing division, which reported 26% organic growth. Sales reached €8,355 million for the six months. 

DFS returned to profitability post-pandemic. Its growth was “supported by the recovery in international travel”, LVMH said in a statement. 

In particular, increases in passenger numbers to Hong Kong and Macau were behind the uplift.

LVMH key H1 2023 figures

Key figures for LVMH’s ‘outstanding’ H1 results

Profit in recurring operations doubled in the division, with Sephora’s UK opening and La Samaritaine in Paris cited as key successes.

LVMH performance across the business 

Wines & Spirits saw a 3% organic revenue decline to €3,181m, which LVMH attributes to a particularly strong 2022 H1. 

While the Champagne businesses saw increases, Hennessy Cognac was impacted by category weakness in the US. 

Glenmorangie Scotch whisky and Belvedere vodka continued to demonstrate “strong momentum in innovation”.

Fashion & Leathergoods saw revenues soar 20% to €21,162m. Star performers included Louis Vuitton, Christian Dior, Celine, Loro Piana, Loewe and Marc Jacobs.

There was “strong momentum” for the Perfumes & Cosmetics division, which saw sales hit €4,028m, up 13%. 

Christian Dior saw continued success in fragrances and make-up, while Guerlain, Givenchy, Benefit and Fenty Beauty continued to grow. 

LVMH H1 performance by product group.

Performance by product for LVMH H1 2023

Watches & Jewellery also achieved 13% growth, with sales totalling €5,427m for the half. 

Tiffany enjoyed “excellent momentum”, while Bulgari saw “strong growth”, as did Chaumet and Fred. 

“In an uncertain geopolitical and economic environment, the Group will maintain a strategy focused on continuously strengthening the desirability of its brands, by relying on the exceptional quality of its products and the excellence of their distribution,” the Group said in its statement. 

Bernard Arnault, LVMH Chairman and CEO, noted: “LVMH achieved outstanding results during a six-month period of ongoing economic and geopolitical uncertainty.”

He continued: “Thanks to the desirability of our brands, we approach the second half of the year with confidence and optimism but will remain vigilant within the current environment and count on the agility and talent of our teams to further strengthen our global leadership position in luxury goods in 2023.”

In May, DFS Group opened a new beauty concept store at New York JFK International Airport Terminal 4, described as a “one-stop beauty destination”.


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