Luxury goods company LVMH (Moët Hennessy Louis Vuitton) has recorded revenue of €41.7bn in the first half of 2024 (H1 24).
Profit from recurring operations for the first half of 2024 came to €10.7bn, equating to an operating margin of 25.6%.
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The group share of net profit amounted to €7.3bn but exchange rate fluctuations had a negative impact on the half-year period.
The company saw 2% organic growth. Europe and the US achieved growth on a constant consolidation scope and currency basis. Japan recorded double-digit growth and the rest of Asia reflected this in spending by Chinese consumers in Europe and Japan. In the second quarter, organic revenue growth was 1%.
To capitalise on this demand in Asia, in May LVMH announced an expansion of its partnership with Alibaba to increase its omnichannel, data and technological presence in China.
Across LVMH’s mammoth brand portfolio, fashion and leather goods saw high operating margins, especially for the flagship brands Louis Vuitton and Christian Dior. There was also rapid growth in fragrances and makeup, driven by beauty retailer Sephora.
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By GlobalDataMeanwhile, LVMH’s wines and spirits business group saw a revenue decline of 9% and profit from recurring operations was down 26%.
Highlighting LVMH’s partnership with the Paris 2024 Olympic and Paralympic Games, CEO and chairman Bernard Arnault commented: “While remaining vigilant in the current context, the group approaches the second half of the year with confidence and will count on the agility and talent of its teams to further strengthen its global leadership position in luxury goods in 2024.”
The global luxury retail market was valued at $462.7 billion in 2023 and will grow at a compound annual rate of more than 6% from 2023 to 2028.
GlobalData’s retail intelligence finds that the eventual subsiding of the global inflation levels will reduce cost pressures on aspirational shoppers, providing an impetus to the growth trajectory of the global luxury market.
