LVMH: Excellent first half for LVMH

  

Paris, July 25, 2023

LVMH Moët Hennessy Louis Vuitton, the world’s leading high-quality products group, recorded revenue of €42.2 billion in the first half of 2023, up 15%. Organic revenue growth was 17% compared to the same period in 2022. All business groups achieved double-digit organic revenue growth over the half year, except for Wines & Spirits, which faced a particularly high basis of comparison.
In the second quarter, organic revenue growth was 17%, in line with trends seen in the first quarter.

Profit from recurring operations for the first half of 2023 was up 13% at €11 574 million. Operating margin reached 27.4% of revenue. Group share of net profit was up 30% at €8 481 million.

Bernard Arnault, Chairman and CEO of LVMH, said: “LVMH achieved outstanding results during a six-month period of ongoing economic and geopolitical uncertainty. The strong creative momentum and excellent distribution of our Maisons continued to inspire dreams, as demonstrated by the enthusiastic reception given to Pharrell Williams’ first fashion show for Louis Vuitton as well as the reopening of the New York “Landmark” of Tiffany & Co. We continued to see progress relating to our environmental, social and societal commitments, most notably in the recent announcement of an ambitious water sobriety plan intended to reduce our overall water consumption footprint by 30% by 2030. 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.”

Highlights of the first half of 2023 include:

• An excellent first half despite a disrupted environment,
• Significant revenue growth across all business groups except Wines & Spirits, which faced a high basis of comparison,
• Strong growth in business in Europe and Asia;
• Solid performance by champagne thanks to its value-based strategy, and a contraction in cognac compared to the first half of 2022 which benefited from the significant impact of inventory rebuilding among distributors,
• Outstanding performance by the Fashion & Leather Goods business group, in particular Louis Vuitton, Christian Dior, Celine, Loro Piana, Loewe and all the other brands which gained market share worldwide,
• Rapid growth in perfume, makeup, and skincare,
• Impressive growth in high jewelry, and strong creative momentum among all Watches and Jewelry Maisons, in particular Tiffany, Bulgari, and TAG Heuer,
• Exceptional performance by Sephora, confirming its position as world leader in beauty retail,
• Return to profit for DFS, which benefited from the recovery in international travel.
• Operating free cash flow halved due to major investments in exceptional real estate and in operational inventories, notably in high jewelry.

 

Key figures

Euro millions	First half 2022	First half 2023	% change
Revenue	36 729	42 240	+ 15 %
Profit from recurring operations	10 235	11 574	+ 13 %
Group share of net profit	6 532	8 481	+ 30 %
Net financial debt	11 117	12 465	+ 12 %
Total equity	52 713	59 449	+ 13 %

Revenue by business group:

Euro millions	First half 2022	First half 2023	% change        Reported           Organic*
Wines & Spirits	3 327	3 181	- 4 %	- 3 %
Fashion & Leather Goods	18 136	21 162	+ 17 %	+ 20 %
Perfumes & Cosmetics	3 618	4 028	+ 11 %	+ 13 %
Watches & Jewelry	4 909	5 427	+ 11 %	+ 13 %
Selective Retailing	6 630	8 355	+ 26 %	+ 26 %
Other activities and eliminations	109	87	-	-
Total LVMH	36 729	42 240	+ 15 %	+ 17 %

* With comparable structure and constant exchange rates. The structural impact for the Group compared to the first half of 2022 was zero and the currency effect was -2%.

Profit from recurring operations by business group:

Euro millions	First half 2022	First half 2023	% change
Wines & Spirits	1 154	1 046	- 9 %
Fashion & Leather Goods	7 509	8 562	+ 14 %
Perfumes & Cosmetics	388	446	+ 15 %
Watches & Jewelry	987	1 089	+ 10 %
Selective Retailing	367	734	+ 100 %
Other activities and eliminations	(170)	(303)	-
Total LVMH	10 235	11 574	+ 13 %

Wines & Spirits: good half year for the Champagne business; weak demand for Hennessy

The Wines & Spirits business group recorded a slight revenue decline (3% organic) in the first half of 2023, when compared to a particularly strong first half of 2022. Profit from recurring operations was down 9%. The Champagne business recorded an increase in revenue over the half year, driven by its value-based strategy. Hennessy cognac was impacted by the economic environment in the United States and by the continued high stock level of its retailers. Among Provence rosé wines, LVMH acquired the prestigious, world leading domain Minuty, and Château d'Esclans stepped up its international expansion. The Joseph Phelps Vineyard, one of the most renowned wine properties in Napa Valley, California, was included in the first half accounts for the first time. Glenmorangie whisky and Belvedere vodka continued to show strong momentum in innovation.

Fashion & Leather Goods: remarkable performances by Louis Vuitton, Christian Dior, Celine, Loro Piana, Loewe and Marc Jacobs

The Fashion & Leather Goods business group recorded organic revenue growth of 20% in the first half of 2023. Profit from recurring operations was up 14%. Louis Vuitton had an excellent first half, still driven by its exceptional creativity, the quality of its products and its strong links with art and culture. Nicolas Ghesquière's talent for creating a dialogue between fashion and architecture continued to elevate the strong desirability of his Women's collections to the highest level. A new chapter opened with the arrival of Pharrell Williams as Men's Creative Director. Set on the stage of the Pont-Neuf bridge in Paris, his first fashion show was met with huge enthusiasm and more than 1.1 billion views on social media reaching an all-time high. Christian Dior continued to enjoy remarkable growth in all its product categories. Whether in Mumbai, Mexico City or Paris, each of the fashion shows inspired by Maria Grazia Chiuri showcased the exceptional craftsmanship of the Maison. The Lady Dior bag, an icon of the Maison Dior, was also featured in the “Christian Dior, Designer of Dreams” Exhibition at the Tokyo Museum of Contemporary Art. The exceptional Dior Homme designs by Kim Jones and the unique high jewelry creations by Victoire de Castellane elevated the superb craftsmanship of the Maison to an unprecedented new contemporary level. The success of Hedi Slimane's creations and fashion shows has continued to increase the desirability of Celine. Driven by the bold creativity of J.W. Anderson, Loewe continued to strengthen its distribution network, most notably with the opening of Casa Dubaï. Fendi opened new stores in Seoul and Tokyo. Loro Piana, Rimowa, Marc Jacobs and Berluti enjoyed an excellent start to the year.

Perfumes & Cosmetics: strong momentum in perfumes and makeup, supported by a highly selective and high-quality distribution policy

The Perfumes & Cosmetics business group recorded organic revenue growth of 13% in the first half of 2023 thanks to strong momentum achieved through innovation, combined with a highly selective distribution policy. Profit from recurring operations was up 15%. Christian Dior enjoyed a remarkable performance, strengthening its leadership in its strategic markets. Sauvage confirmed its position as the world's leading perfume, while the iconic women's fragrances J'adore and Miss Dior saw continued success. Makeup also contributed to the strong set of results from the Maison, particularly Dior Addict Lip Maximizer and Forever Skin Correct foundation. Finally, skincare had an excellent performance, particularly in the premium segment in Asia with its iconic Prestige range. Guerlain continued to grow, driven notably by the vitality of its Abeille Royale skincare and its high-end perfumery collection l’Art et la Matière, enriched with a new Jasmin Bonheur creation. Givenchy benefited from the excellent reception of its new fragrance Gentleman Society. Benefit successfully expanded its The Porefessional skincare range, while Fenty Beauty's latest creation, Hella Thicc mascara, is already one of the Maison’s bestsellers.

Watches & Jewelry: strong growth in jewelry, sustained innovation in watchmaking

The Watches & Jewelry business group achieved organic revenue growth of 13% in the first half of 2023. Profit from recurring operations was up 10%. In jewelry, Tiffany enjoyed excellent momentum with the exceptional success of the reopening of the “Landmark” in New York; The Landmark has once again become an emblematic venue for New York life. The new Lock collection continued to be rolled out worldwide and the first High Jewelry collection by Artistic Director Nathalie Verdeille was unveiled. Bulgari, which experienced strong growth, celebrated the 75th anniversary of its iconic Serpenti collection. Its high jewelry, with notably the launch of the Mediterranea collection, saw outstanding performance. Chaumet and Fred experienced strong growth over the first half. TAG Heuer celebrated 60 years of its Carrera collection. The LVMH watchmaking Maisons TAG Heuer, Hublot and Zenith unveiled many new products during LVMH Watch Week and the Watches & Wonders trade show.

Selective Retailing: excellent performance by Sephora; DFS growth supported by the recovery in international travel

In Selective Retailing, organic revenue growth was 26% in the first half of 2023. Profit from recurring operations was up 100%. Sephora performed exceptionally well and continued to gain market share thanks to its distinct and innovative product and service offering. Momentum was particularly strong in North America, Europe and the Middle East. Its distribution network continued to expand, particularly in the United Kingdom where its first store opening proved a huge success. DFS benefited from the gradual recovery in international travel and, in particular, from the return of tourists to the flagship destinations of Hong Kong and Macau. In France, the strong performance of La Samaritaine in Paris confirmed its appeal as a destination, within the context of an increasing number of Asian tourists. Le Bon Marché, which is growing strongly, continued to develop innovative concepts and benefit from a loyal French customer base as well as a return of international travelers.

Outlook 2023

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.
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 LVMH's global leadership position in luxury goods once again in 2023.

An interim dividend of €5.50 will be paid on Wednesday, December 6^th, 2023.

Regulated information related to this press release, the half year results presentation and the half year financial statement are available on the website www.lvmh.com.
Limited review procedures have been carried out and the related report will be issued following the board meeting.

Details of the webcast relating to the publication of the 2023 half year results are available at: www.lvmh.com.

ANNEX

The condensed consolidated financial statements for the first half of 2023 are included in the PDF version of the press release.

LVMH – Revenue by business group and by quarter

Revenue first half 2023 (Euro millions)

2023	Wines & Spirits	Fashion & Leather Goods	Perfumes & Cosmetics	Watches & Jewelry	Selective Retailing	Other activities and eliminations	Total
First quarter	1 694	10 728	2 115	2 589	3 961	(52)	21 035
Second quarter	1 486	10 434	1 913	2 839	4 394	140	21 206
First half	3 181	21 162	4 028	5 427	8 355	87	42 240

Revenue first half 2023 (organic growth compared to the first half of 2022)

2023	Wines & Spirits	Fashion & Leather Goods	Perfumes & Cosmetics	Watches & Jewelry	Selective Retailing	Other activities and eliminations	Total
First quarter	+ 3 %	+ 18 %	+ 10 %	+ 11 %	+ 28 %	-	+ 17 %
Second quarter	- 8 %	+ 21 %	+ 16 %	+ 14 %	+ 25 %	-	+ 17 %
First half	- 3 %	+ 20 %	+ 13 %	+ 13 %	+ 26 %	-	+ 17 %

Revenue first half 2022 (Euro millions)

2022	Wines & Spirits	Fashion & Leather Goods	Perfumes & Cosmetics	Watches & Jewelry	Selective Retailing	Other activities and eliminations	Total
First quarter	1 638	9 123	1 905	2 338	3 040	(41)	18 003
Second quarter	1 689	9 013	1 714	2 570	3 591	149	18 726
First half	3 327	18 136	3 618	4 909	6 630	109	36 729

Alternative performance indicators 
For the purposes of its financial communication, in addition to the accounting aggregates defined by IAS/IFRS, LVMH uses alternative performance indicators established in accordance with AMF position DOC-2015-12.
The table below lists these indicators and the reference to their definition and their reconciliation with the aggregates defined by IAS/IFRS standards, in the published documents.

Indicators	Reference to published documents
Free operating cash flow	URD (consolidated accounts, consolidated cash flow statement)
Net Financial debt	URD (notes 1.23 and 19 of the appendix to the consolidated accounts)
Gearing	URD (part 2, Comments on the consolidated balance sheet)
Organic Growth	URD (part 1, Comments on the consolidated income statement)

URD: Universal Registration Document as at December 31, 2022

LVMH

LVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits by a portfolio of brands that includes Moët & Chandon, Dom Pérignon, Veuve Clicquot, 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, Newton, Bodega Numanthia, Ao Yun, Château d’Esclans, Château Galoupet and Joseph Phelps. Its Fashion and Leather Goods division includes Louis Vuitton, Christian Dior, Celine, Loewe, Kenzo, Givenchy, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Loro Piana, RIMOWA, Patou. 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, Maison Francis Kurkdjian and Officine Universelle Buly. LVMH's Watches and Jewelry division comprises Bulgari, Tiffany & Co., TAG Heuer, Chaumet, 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, Starboard Cruise Services, Belmond 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 Universal Registration Document which is available on the website (www.lvmh.com). 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.”

LVMH CONTACTS

Analysts and investors  Chris Hollis / Rodolphe Ozun  LVMH  + 33 1 44 13 21 22 / + 33 1 44 13 27 21	Media  Jean-Charles Tréhan  LVMH  + 33 1 44 13 26 20
MEDIA CONTACTS
France  Charlotte Mariné / +33 6 75 30 43 91 Axelle Gadala / +33 6 89 01 07 60 Publicis Consultants +33 1 44 82 46 05	France  Michel Calzaroni / + 33 6 07 34 20 14 Olivier Labesse / Hugues Schmitt / Thomas Roborel de Climens   + 33 6 79 11 49 71
Italy  Michele Calcaterra / Matteo Steinbach  SEC and Partners  + 39 02 6249991	UK  Hugh Morrison / Charlotte McMullen  Montfort Communications  + 44 7921 881 800
US  Nik Deogun / Blake Sonnenshein  Brunswick Group  + 1 212 333 3810	China  Daniel Jeffreys  Deluxewords  + 44 772 212 6562  + 86 21 80 36 04 48

Attachment

• LVMH 2023 Half Year Results