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LVMH announces financial results

LVMH

LVMH Moët Hennessy Louis Vuitton, the high-quality products group, recorded revenue of US$33.8 billion in the first half of 2021, up 56 percent compared to the same period in 2020.

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Organic revenue growth was 53 percent compared to 2020 and 11 percent compared to 2019. This performance reflects accelerated growth in the second quarter of 2021, which saw organic revenue increase by 14 percent compared to 8 percent in the first quarter.

The first half of this year marks a return to strong growth momentum after a severely disrupted year in 2020 resulting from the global pandemic. The largest business group, Fashion & Leather Goods, achieved record levels of revenue with organic growth of 81 percent compared to 2020, and 38 percent compared to 2019. The United States and Asia are up sharply since the start of the year while Europe is experiencing a gradual recovery.

Profit from recurring operations was US$9,011 million for the first half of 2021, up 44 percent compared to the first half of 2019 and more than four times higher than that of 2020. Operating margin reached 26.6 percent, up 5.5 points compared to 2019. Profit from recurring operations for the Fashion & Leather Goods business group stood at US$6,683 million for the first half, more than three times that of 2020, and up 74 percent compared to 2019. Group share of net profit amounted to US$6,245 million, up 62 percent compared to 2019 and 10 times higher than 2020. Operating free cash flow exceeded US$5.9 billion, more than three times that of 2019.

Bernard Arnault, Chairman and CEO of LVMH, said, “LVMH has enjoyed an excellent half-year and is reaping the benefits of having continued to innovate and invest in its businesses throughout the pandemic despite being in the midst of a global crisis. The creativity, the high-quality and enduring nature of our products and the sense of responsibility that drives us, have been critical in enabling us to successfully withstand the effects of the pandemic; they will remain firmly embedded in all our Maisons, thereby ensuring their continued desirability.”

“Highlights from the first half include the integration of the Maison Tiffany and the inauguration of La Samaritaine after an ambitious renovation program. 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,” continued Arnault.

The Wines & Spirits business group recorded organic revenue growth of 44 percent in the first half of 2021 compared to the same period of 2020 and 12 percent compared to that of 2019. Profit from recurring operations was up 20 percent compared to the first half of 2019. Champagne volumes rose 10 percent compared to the first half of 2019, driven by the good momentum in Europe and the United States. Hennessy cognac volumes increased by 6 percent compared to 2019, limited by supply constraints. China, which was the first market to have been impacted by the pandemic in early 2020, experienced a strong rebound over the first half of this year. Demand in the United States held up well. LVMH took a 50 percent equity stake in the Champagne Maison Armand de Brignac.

The Fashion & Leather Goods business group recorded organic revenue growth of 81 percent in the first half of 2021 compared to the same period of 2020. Organic revenue growth compared to the first half of 2019 was 38 percent. Profit from recurring operations was up 74 percent compared to the first half of 2019 and represents more than three times that of 2020.

Louis Vuitton, driven as always by its creativity and the artisanal excellence of its products, delivered a remarkable performance and maintained its profitability at an exceptional level. Due to the desirability of its iconic designs, purchases of many are subject to a waiting list. The Maison continues to offer its customers a unique experience, whether in its stores or through its many original initiatives. Christian Dior had an excellent first half with strong growth among local customers across all its product categories. Several innovations were unveiled during the first half. Celine’s ready-to-wear and leather goods collections created by Hedi Slimane were hugely successful. Loewe continues to surprise with its innovative digital concepts in connection with the new collections created by J.W. Anderson. Fendi presented a ready-to-wear capsule by Kim Jones, the first collections of which debuted in July. Marc Jacobs performed very well over the period.

The Perfumes & Cosmetics business group recorded organic revenue growth of 37 percent in the first half of 2021 compared to the same period of 2020. Organic revenue was down 3 percent compared to the first half of 2019. Profit from recurring operations was up 1 percent compared to the first half of 2019. The Group’s major brands have maintained a policy of selective distribution unlike many competitors who have increased their proportion of discounted sales or sales in parallel networks, as a means of supporting their revenues.

The brands are benefiting from continued growth in online sales, partially offsetting the impact of the suspension of international travel and the closure of many points of sale. Parfums Christian Dior enjoyed a strong acceleration in its business with local customers, extending the recovery that began at the end of 2020. The continued success in iconic perfumes SauvageMiss Dior and J’Adore, the roll-out of Rouge Dior lipstick and the rapid progress of skincare lines Prestige and Capture contributed to the excellent performance of the Maison. Guerlain showed very positive momentum, driven by skincare, thanks to the exceptional vitality of Abeille Royale and Orchidée Impériale. Parfums Givenchy is gaining market share due to the success of L’Interdit perfume and the promising relaunch of the Irresistible collection. Fresh confirmed its presence in ultra-premium skincare and Maison Francis Kurkdjian continues to post remarkable growth. 

The Watches & Jewelry business group recorded organic revenue growth of 71 percent in the first half of 2021 compared to the same period in 2020 and 5 percent compared to that in 2019 (excluding Tiffany). Profit from recurring operations was up 122 percent compared to the first half of 2019 and 27 percent excluding the effect of the integration of Tiffany.

The first half saw the integration for the first time of iconic jewelry Maison Tiffany, which has benefited from the new team’s focus on its iconic products. Honouring its long-standing tradition of expressing love and diversity, the Maison has successfully launched its first engagement ring for men, the Charles Tiffany Setting. Bvlgari saw good growth in jewelry, in particular in its network of own stores.

The new Magnifica high-end jewelry collection was unveiled in June. Chaumet inaugurated its new exhibition “Joséphine et Napoléon” at its recently restored historic address at 12 place Vendôme. In watchmaking, TAG Heuer signed a major partnership with Porsche and launched the Carrera Porsche chronograph to mark the occasion. Official watch for the Euro 2020, Hublot enjoyed high visibility during the second quarter.

In Selective Retailing, organic revenue was up 12 percent compared to the first half of 2020 and down 25 percent compared to the first half of 2019. Profit from recurring operations was once again positive but was down 82 percent compared to the first half of 2019. Sephora achieved a good level of performance in a commercial environment which was impacted by store closures in several countries in Europe. Online sales continue to progress all over the world. A strategic partnership has been signed with Zalando, which is expected to launch in Germany by the end of the year. DFS continued to be impacted by the lack of recovery in international travel to most destinations. Following an ambitious renovation program, faithful to the history of this flagship store and maintaining high environmental standards, the reopening of La Samaritaine on 23rd June was an historic success.

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Within the context of emerging from the health crisis, 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. Its strategy of focusing on the highest quality across all its activities, combined with the dynamism and unparalleled creativity of our teams, will enable LVMH to reinforce LVMH’s global leadership position in luxury goods once again in 2021.