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LVMH Posts 6% Growth for First Half 2013 Revenue
Posted: July 25, 2013
LVMH Moët Hennessy Louis Vuitton (LVMH) recorded revenue of €13.7 billion in the first half 2013, an increase of 6%. Organic revenue growth was 8% compared to the same period in 2012, which itself saw strong growth. The group continued to experience good momentum in the U.S. and Asia, and continues to grow in Europe in a more difficult economic environment. With organic growth of 9%, the second quarter showed some acceleration compared to the first quarter.
Bernard Arnault, chairman and CEO of LVMH, commented, “The performance of LVMH in the first half, once again, demonstrates the exceptional appeal of our brands, the attraction of our high-quality artisanal products and the relevance of our strategy. Innovation, extreme quality, strong distribution and savoir-faire in all of our businesses reinforce our Maisons. Loro Piana, with whom we share the same values of family and craftsmanship, will fit harmoniously within this dynamic. It is with confidence that we approach the second half of the year and rely on the creativity and quality of our products, as well as the effectiveness of our teams, to pursue further market share gains in our traditional markets as well as in high potential emerging territories.”
LVMH's perfumes and cosmetics business group recorded organic revenue growth of 6%. Profit from recurring operations was up 2% compared to the first half of 2012. Innovation and market share gains were both important features of the first half of 2013. Parfums Christian Dior maintained good momentum, supported by its perfumes, including Miss Dior and J’Adore with Voile de Parfum. The makeup segment, with its privileged connections to couture, made significant progress. Guerlain benefited from the continuing success of La Petite Robe Noire, and Parfums Givenchy registered good progress in its makeup line. Benefit and Fresh experienced rapid international development, as well.
For its selective retailing business group, LVMH recorded organic revenue growth of 19% and a 9% increase in profit from recurring operations in the first half of 2013. DFS benefited from strong comparable store growth supported by good momentum of Asian clientele. The new concessions won in late 2012 in the Hong Kong airport made a significant contribution to the increase in revenue while major renovation work weighed on profitability. Sephora continues to deliver outstanding performance, driven by growth in revenue at existing stores and the expansion of its global network. In North America, where the company continues to strengthen its position and innovate in the digital world, revenue growth also remained strong. Sephora also opened a flagship store in China in Shanghai, and began its expansion in India.
For its 2013 outlook, despite an uncertain European economic environment, LVMH will 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. Its strategy of focusing on quality across all our activities, combined with the dynamism and unparalleled creativity of its teams, will enable the company to reinforce, once again in 2013, LVMH’s global leadership position in luxury goods.