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LVMH Announces Revenue of €14 Billion for First Half 2014
Posted: July 24, 2014
LVMH Moët Hennessy Louis Vuitton recorded revenue of €14 billion in the first half of 2014, an increase of 3%. Organic revenue growth was 5% compared to the same period in 2013, and the company continued to grow in the U.S. and Asia while Europe demonstrated resilience despite a still challenging economic environment. Also, with organic growth of 3%, the second quarter showed comparable regional trends to the first quarter, except in Japan, which had experienced particularly strong growth during the first quarter.
Bernard Arnault, chairman and CEO of LVMH, commented, “The results of the first half demonstrate LVMH’s excellent resilience, thanks to the strength of its brands and the responsiveness of its organization in a climate of economic and financial uncertainties. The first half of the year also witnessed the smooth integration of Loro Piana into the group. Following the first half’s good resilience, it is with confidence that we approach the second half of the year and rely on the creativity and quality of our products, and the effectiveness of our teams, to pursue further market share gains in our traditional markets, as well as in high potential emerging territories.”
The revenue for the company’s perfumes and cosmetics division was €1.83 billion for the first half of 2014, up 2% reported and 6% organic from the same time period in 2013. Propelled by the vitality of its flagship lines and the constant attention to quality of its products and their distribution, LVMH’s perfumers and cosmetics brands are demonstrating excellent dynamics and increasing market share. Parfums Christian Dior continued to benefit from the growth of its iconic perfumes J’Adore and Dior Homme, and the makeup segment also experienced sustained growth. Guerlain continues its progress with the ongoing success of La Petite Robe Noire and the rapid development of Orchidée Impériale and Abeille Royale. And Benefit Cosmetics, Make Up For Ever and Fresh confirmed their excellent performance.
For its selective retailing division, LVMH recorded revenue of €4.38 billion for the first half of 2014, an increase of 4% reported and 9% organic from the same time period in 2013. DFS relies on the growth of sales to Asian clientele in a context of a fall in spending by Japanese tourists due to the weakness of the yen, and major expansion and renovation work at several airport concessions weighed on its profitability. Sephora continues its growth in all regions, with particularly remarkable performance in North America, the Middle East and Asia. The brand continues to strengthen its position in key markets. Online sales grew significantly, helped by a strengthened mobile offering. Sephora is proceeding with the expansion of its store network and has just opened its first flagship store in Indonesia.
For its 2014 outlook, despite an uncertain European economic environment, LVMH looks to continue to gain market share thanks to the numerous product launches planned before the end of the year and its geographic expansion in promising markets, while continuing to manage costs.