Ad hoc-Mitteilungen

Excellent first half for LVMH

Paris, 24 July 2018

LVMH Moët Hennessy Louis Vuitton, the world's leading luxury products group, recorded revenue of €21.8 billion in the first half of 2018, an increase of 10%. Organic revenue growth was 12% compared to the same period in 2017. It was up 14% when excluding the impact of the termination of the Hong Kong International Airport concessions at the end of 2017. The United States, Asia and Europe experienced good growth.

In the second quarter, revenue increased by 11% compared to the same period of 2017, a performance in line with the trends of the beginning of the year. Organic revenue growth was 11%.

Profit from recurring operations was €4 648 million for the first half of 2018, an increase of 28%. Operating margin reached 21.4%, an increase of 2.9 percentage points. Group share of net profit amounted to €3 004 million, an increase of 41%.

Bernard Arnault, Chairman and CEO of LVMH, commented: "The excellent results of the first half of the year attest to the strong desirability of our brands and the effectiveness of our strategy. The performance of the first half is even more remarkable given the unfavorable currency environment. The standards of quality and creativity required from our Maisons, which combine both modernity and tradition, are key to LVMH's success, always driven by a long-term vision. Despite buoyant global demand, monetary and geopolitical uncertainties remain. In this context, we will stay vigilant and rely on the talent of our teams and the shared entrepreneurial passion to further increase our leadership in the world of high quality products in 2018."

Highlights of the first half of 2018 include:

  • Double-digit increases in revenue and profit from recurring operations,
  • Strong growth in Asia and the United States,
  • Good start to the year for Wines and Spirits,
  • Outstanding momentum at Louis Vuitton; profitability remains at an exceptional level,
  • Success of new products at Christian Dior across all product lines,
  • New creative talent at several fashion brands,
  • Excellent performance of Bvlgari,
  • Good performance of watch brands,
  • Sephora's strong revenue growth in stores and online,
  • Rebound of profitability at DFS,
  • Cash from operations before changes in working capital was €5.5 billion, an increase of 21%,
  • Net debt to equity ratio of 23% as of the end of June 2018.

Key figures

Euro millions
First half 2017* First half 2018 % change

Profit from recurring operations

Group share of net profit

Cash from operations**

Net Financial Debt

Total Equity
19 714

3 640

2 127

4 501

3 850

28 282
21 750

4 648

3 004

5 464

7 359

31 482
+ 10 %

+ 28 %

+ 41 %

+ 21 %

+ 91 %

+ 11 %

* Restated for the effects of the application of IFRS 9 Financial instruments.

** Before changes in working capital.

Revenue by business group:

Euro millions First half   

First half   

% change

  Reported  Organic*
Wines & Spirits 2 294 2 271 - 1 % + 7 %
Fashion & Leather Goods 6 899 8 594 + 25 %  + 15 %
Perfumes & Cosmetics 2 670 2 877 + 8 % + 16 %
Watches & Jewelry 1 838 1 978 + 8 % + 16 %
Selective Retailing 6 280 6 325 + 1 % + 9 %**
Other activities and eliminations (267) (295) - -
Total LVMH 19 714 21 750 + 10 % + 12 %
* with comparable structure and constant exchange rates. The currency effect for the Group was -8% and the structural impact was +6%.

** + 15% excluding the termination of the Hong Kong International Airport concessions.

Profit from recurring operations by business group:

Euro millions First half   

First half   

% change
Wines & Spirits 681 726 + 7 %
Fashion & Leather Goods 2 192 2 775 + 27 %
Perfumes & Cosmetics 292 364 + 25 %
Watches & Jewelry 234 342 + 46 %
Selective Retailing 441 612 + 39 %
Other activities and eliminations (200) (171) -
Total LVMH 3 640 4 648  + 28 %

Wines & Spirits: strong momentum in China and good progress in Europe and the United States, despite supply constraints

The Wines & Spirits business group recorded organic revenue growth of 7%. Profit from recurring operations increased by 7%. The business group pursued its value strategy based on a strong policy of innovation and targeted investments in communication. In the champagne business, prestige vintages were particularly dynamic while a firm price increase policy continued. Europe and Japan progressed while the United States was in decline due to a delay in shipments. Hennessy cognac continued to show strong growth in the US market in a tight supply environment; the Chinese market continued to develop rapidly.

Fashion & Leather Goods: strong desirability at Louis Vuitton across all its activities and further strengthening of other brands

The Fashion & Leather Goods business group recorded organic revenue growth of 15%. Profit from recurring operations was up 27%. The remarkable growth at Louis Vuitton continues to be driven by its exceptional creativity, and by the right balance between tradition and modernity, the success of icons and the new creations by Nicolas Ghesquière. Of note during the first half was the arrival of Virgil Abloh, as Menswear Artistic Director, whose debut fashion show was widely commented on across social media, and was exceptionally well received. Christian Dior, consolidated since the second half of 2017, had an excellent performance. Kim Jones, appointed Artistic Director of Dior Homme, unveiled his first collection, which also received a formidable welcome. Céline entered a new and ambitious stage of its development with the appointment of Hedi Slimane as Artistic, Creative and Image Director of the brand, whose first collections will be presented in September. Fendi and Loro Piana continued to grow. Other brands further strengthened.

Perfumes & Cosmetics: all brands contributed to strong growth with rapid progress in Asia

The Perfumes & Cosmetics business group posted organic revenue growth of 16%. Profit from recurring operations was up 25%. Christian Dior achieved an outstanding performance, driven by the vitality of its iconic fragrances J'adore and Miss Dior, and by the great success of Sauvage. Makeup and skincare progressed strongly. Guerlain benefited from the remarkable growth of the iconic Rouge G lipstick and rapid progress in its skincare line, Abeille Royale. Parfums Givenchy maintained its rapid growth in makeup. Benefit successfully enhanced its mascara range and its Brow collection. Fresh, Fenty Beauty and Acqua di Parma grew strongly.

Watches & Jewelry: excellent first half for Bvlgari and good development of watch brands' iconic product lines

The Watches & Jewelry business group recorded organic revenue growth of 16%. Profit from recurring operations was up 46%. Bvlgari had an excellent first half and continued to gain market share. This performance was especially notable in jewelry and in the Chinese and American markets. The iconic lines Serpenti, B-Zero 1, Diva and Octo made strong progress. Chaumet unveiled its new high-end jewelry collection. The momentum at TAG Heuer was reflected in the innovations of its flagship collections Carrera, Aquaracer and Formula 1, and a smaller version of its smart watch was launched. Hublot enjoyed strong growth and benefited from the enhanced visibility of the brand as the Official Timekeeper of the FIFA World Cup.

Selective Retailing: continued good momentum of Sephora and strong rebound of profitability at DFS

The Selective Retailing business group posted organic revenue growth of 9% or 15% excluding the closure of its concessions at Hong Kong International Airport. Profit from recurring operations was up 39%. Sephora achieved sustained growth across all areas of operation. With omni-channel at the heart of its strategy, online sales advanced rapidly. At the same time, Sephora expanded and renovated its store network. Le Bon Marché continued to cultivate its uniqueness and the exclusivity of its product offering; the online platform 24 Sèvres launched a year ago developed actively. DFS enjoyed an excellent start to the year. Performance was particularly good in Hong Kong and Macao while its Gallerias, recently opened in Cambodia and Italy, made remarkable progress. The termination of the loss-making Hong Kong International Airport concessions at the end of 2017 contributed to the strong rebound of profitability.

 Outlook 2018

In the buoyant environment of the beginning of this year, albeit marked by unfavorable exchange rates and geopolitical uncertainties, LVMH will continue to pursue gains in market share through the numerous product launches planned before the end of the year and its geographic expansion in promising markets, while continuing to manage costs.

Our strategy of focusing on quality across all our activities, combined with the dynamism and unparalleled creativity of our teams, will enable us to reinforce, once again in 2018, LVMH's global leadership position in luxury goods.

An interim dividend of 2 Euros will be paid on December 6th, 2018.

Regulated information related to this press release, the half year results presentation and the half year financial statement are available on our internet site

Limited review procedures have been carried out, the related report will be issued following the Board meeting.


LVMH - Revenue by business group and by quarter

Revenue first half 2018 (Euro millions)

2018 Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective  Retailing Other activities & eliminations Total
First quarter 1 195 4 270 1 500 959 3 104 (174) 10 854
Second quarter 1 076 4 324 1 377 1 019 3 221 (121) 10 896
First half 2 271 8 594 2 877 1 978 6 325 (295) 21 750

Revenue first half 2018 (organic growth compared to the first half 2017)

2018 Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective  Retailing Other activities & eliminations Total
First quarter +10% +16% +17% +20% +9% - +13%
Second quarter +3% +13% +14% +12% +9% - +11%
First half +7% +15% +16% +16% +9% - +12%

Revenue first half 2017 (Euro millions)

2017 Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective  Retailing Other activities & eliminations Total
First quarter 1 196 3 405 1 395 879 3 154 (145) 9 884
Second quarter 1 098 *3 494 1 275 959 3 126 (122) 9 830
First half 2 294 6 899 2 670 1 838 6 280 (267) 19 714

* Includes all Rimowa revenue for the first half of 2017.


LVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits by a portfolio of brands that includes Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier, Château d'Yquem, Domaine du Clos des Lambrays, Château Cheval Blanc, Colgin Cellars, Hennessy, Glenmorangie, Ardbeg, Belvedere, Woodinville, Volcán de Mi Tierra, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape Mentelle, Newton, Bodega Numanthia and Ao Yun. Its Fashion and Leather Goods division includes Louis Vuitton, Christian Dior Couture, Céline, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Nicholas Kirkwood, Loro Piana and RIMOWA. LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums Givenchy, Kenzo Parfums, Perfumes Loewe, Benefit Cosmetics, Make Up For Ever, Acqua di Parma, Fresh, Fenty Beauty by Rihanna and Maison Francis Kurkdjian. LVMH's Watches and Jewelry division comprises Bvlgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred and Hublot. LVMH is also active in selective retailing as well as in other activities through DFS, Sephora, Le Bon Marché, La Samaritaine, Groupe Les Echos, Cova, Le Jardin d'Acclimatation, Royal Van Lent and Cheval Blanc hotels.

"This document may contain certain forward looking statements which are based on estimations and forecasts. By their nature, these forward looking statements are subject to important risks and uncertainties and factors beyond our control or ability to predict, in particular those described in LVMH's Reference Document which is available on the website ( These forward looking statements should not be considered as a guarantee of future performance, the actual results could differ materially from those expressed or implied by them. The forward looking statements only reflect LVMH's views as of the date of this document, and LVMH does not undertake to revise or update these forward looking statements. The forward looking statements should be used with caution and circumspection and in no event can LVMH and its Management be held responsible for any investment or other decision based upon such statements. The information in this document does not constitute an offer to sell or an invitation to buy shares in LVMH or an invitation or inducement to engage in any other investment activities."

Analysts and investors: LVMH

Chris Hollis
+ 33 1 44 13 21 22
LVMH +33 1 44 13 26 20
Jean-Charles Tréhan  
France: DGM Conseil

Michel Calzaroni/Olivier Labesse/

Hugues Schmitt/Thomas Roborel de Climens
+ 33 1 40 70 11 89
UK: Montfort Communications

Hugh Morrison / Charlotte McMullen
+44 203 514 0897
Italy: SEC and Partners +39 02 624 9991
  Michele Calcaterra/ Matteo Steinbach  
US: Kekst & Company

James Fingeroth/Molly Morse/

Anntal Silver
+1 212 521 4800


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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: LVMH via Globenewswire

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