LVMH revenue rises as brand portfolio continues to thrive

The luxury retail group reported revenue of €42.2bn (£36.1bn) in its first half of the full financial year, up 15% year on year from €36.7bn (£31.4bn) for the same period in 2022.

LVMH credited its first-half performance to “strong growth” across Europe and Asia, despite some elements of the business including wines and spirits being “impacted by the economic environment in the United States” as well as a continued high level of stock across its retailers.

LVMH, which owns brands including Christian Dior, Givenchy and Louis Vuitton, recorded revenue growth of 20% across its fashion and leather goods business group as Louis Vuitton in particular had “an excellent first half”.

Within LVMH’s perfume and cosmetics division, the business credited its revenue growth of 13% in the first half to “strong momentum achieved through innovation”.

Its Sauvage fragrance “confirmed its position as the world’s leading perfume” during the period, while Miss Dior and J’Adore also saw “continued success”.

The luxury conglomerate said that Sephora performed “exceptionally well and continued to gain market share” during the trading period, and said its first store opening in the UK “proved a huge success”.

In terms of outlook, LVMH said it remains focused on strengthening the desirability of its brand portfolio despite the “uncertain geopolitical and economic environment”.

LVMH chief executive and chair Bernard Arnault said: “LVMH achieved outstanding results during a six-month period of ongoing economic and geopolitical uncertainty.

“We continued to see progress relating to our environmental, social and societal commitments, most notably in the recent announcement of an ambitious water sobriety plan intended to reduce our overall water consumption footprint by 30% by 2030.

“Thanks to the desirability of our brands, we approach the second half of the year with confidence and optimism, but will remain vigilant within the current environment and count on the agility and talent of our teams to further strengthen our global leadership position in luxury goods in 2023.”

LVMH also announced earlier this week that it has been named as a premium partner of the 2024 Paris Olympic and Paralympic Games.