Luxury giant LVMH, owner of Louis Vuitton reports a strong first half of 2018 with a 10 percent revenue lift, pushed by leather goods and fashion. The group saw a total revenue of 21.8 billion euros, $25 billion at current exchange, while organic growth jumped 12 percent compared to the same time period last year. The United States, Asia and Europe were the markets leading LVMH’s growth.
LVMH’s sales rose about 10 per cent in the US, 17-18 per cent in Asia and mid-single digits in Europe during the first half. Mr Guiony said the lower revenues in its home market reflected a price rebalancing driven by the strengthening euro.
The group’s second quarter revenue saw an increase of 11 percent compared to last year with organic growth also at 11 percent. In the first half, LVMH also accrued 4.6 million euros, $5.4 million at current exchange, in profits from recurring operations. This was a year-over-year increase of 28 percent.
The group’s operating margin increased 2.9 percentage points to 21.4 percent and saw a group share of net profit at 3 million euros, or $3.5 million, a jump of 41 percent.
“The excellent results of the first half of the year attest to the strong desirability of our brands and the effectiveness of our strategy,” said Bernard Arnault, chairman and CEO of LVMH. “The performance of the first half is even more remarkable given the unfavorable currency environment.
“The standards of quality and creativity required from our maisons, which combine both modernity and tradition, are key to LVMH’s success, always driven by a long-term vision,” he said. “Despite buoyant global demand, monetary and geopolitical uncertainties remain.
Jean-Jacques Guiony, chief financial officer, told the Financial Times that the group was “worried” about trade wars. “If things turn out in a bad way it could have deep and lasting consequences on the Chinese, US and European economies,” he said.