- Prachi Singh |
LVMH Moët Hennessy Louis Vuitton reported revenue of 19.7 billion euros (23 billion dollars) in the first half of 2017, an increase of 15 percent, while organic revenue growth was 12 percent. The company said, all geographic areas continue to progress well. In the second quarter, revenue increased by 15 percent compared to the same period in 2016, with the integration for the first time of Rimowa, while organic revenue growth was 12 percent. Profit from recurring operations was 3, 640 million euros (4,276 million dollars), an increase of 23 percent and group share of net profit amounted to 2, 119 million euros (2,489 million dollars), an increase of 24 percent.
“LVMH has enjoyed an excellent first half, to which all our businesses contributed. In the current climate of geopolitical and economic instability, creativity and quality, the founding values of our group, have more than ever become benchmarks for all. The increasing digitalization of our activities furthermore reinforces the quality of the experience we bring to our customers. In an environment that remains uncertain, we approach the second half of the year with caution,” said Bernard Arnault, Chairman and CEO of LVMH in a statement.
LVMH business segments post positive growth
The fashion & leather goods business group recorded organic revenue growth of 14 percent and 17 percent on a reported basis, while profit from recurring operations was up 34 percent. The company said, Fendi continued its strong growth and enriched its leather goods lines, notably with the new Kan-Imodel. Loro Piana strengthened its presence in Asia with several openings. Céline, Loewe and Kenzo experienced good growth as well. Marc Jacobs strengthened its product offering and continued its restructuring. Other brands continued to grow.
The perfumes & cosmetics business group posted organic revenue growth of 12 percent and 14 percent on a reported basis, while profit from recurring operations was up 7 percent. Watches & jewelry also witnessed good first half with organic revenue growth of 13 percent and 14 percent on a reported basis, while profit from recurring operations was up 14 percent.
The selective retailing business group posted organic revenue growth of 12 percent or 15 percent on a reported basis and profit from recurring operations was up 8 percent. Sephora continued to make progress, while increasing its share of online sales. The brand continued to invest in extending its network and renovating existing stores, particularly in New York and Dubai. Le Bon Marché developed a new online shopping experience by launching its digital platform 24 Sèvres. DFS experienced better momentum in Asia, while the T Galleria, which opened in 2016 in Cambodia and Italy, continued to develop.
The company said, an interim dividend of 1.60 euro (1.88 dollars) will be paid on December 7, 2017.
Picture:Louis Vuitton website