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LVMH Posts Revenue Increase Q1/Q2 2009
Posted: July 28, 2009
LVMH Moët Hennessy Louis Vuitton recorded revenue of €7.8 billion in the first half of 2009, reflecting a slight increase over the same period in 2008. Profit from recurring operations came to €1,363 million. According to a company statement, LVMH increased tangibly of the brands that its controls through distribution. The brands distributed by third parties, on the other hand, suffered a massive destocking impact.
“The first half results once again demonstrate the exceptional appeal of our brands, as well as the effectiveness of our strategy, particularly remarkable given the global economic crisis," said Bernard Arnault, chairman and CEO, LVMH. "Reassured by the good resilience in the first half of the year, the group approaches the second half with confidence. It will rely upon the creativity and quality of its products as well as the effectiveness of its teams, who implement notably cost reduction measures adapted to the crisis, to pursue further development in its historical markets as well as in high potential emerging markets.”
The perfumes and cosmetics business group increased its market share in the first half of 2009, despite revenue decline due to destocking by distributors. With a still high comparable base, the second quarter saw a slight increase in orders from retailers who considerably reduced their stock levels at the beginning of the year. Profit from recurring operations stood at €121 million. By accelerating the development of its star lines, Parfums Christian Dior proved its good resilience and increased its market share. Beyond the global success of J’Adore, the first half was notable for the progress of Miss Dior Chérie and Eau Sauvage. In makeup, the new foundation Diorskin Nude was very successful. Guerlain successfully launched its new lipstick Rouge G, and benefited from the continued rise of Shalimar. Givenchy released its masculine perfume Play. Sustained by their international expansion, Benefit and Make Up For Ever accomplished good performances.
Sephora registered revenue growth in all of its markets in the first half of 2009, and an increase in its profit from recurring operations. It continues to win market share through the strengthening of its commercial reactivity and innovative and exclusive service and product offers. Its network of stores continues to grow in the most promising markets, notably in China where the expansion proceeds at a sustained pace.