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Global|LVMH Group's Net Profit increased by 41% in the first half of the year. Which brand is competing?

Aug 9, 2018.Xueqing DingParis, FR
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LVMH (Louis Vuitton Moët Hennessy), the world's leading luxury goods group, received an excellent transcript in finance for the first half of 2018. In the first half of the year, total sales reached 21.8 billion euros, a year-on-year increase of 10% and organic revenue increased by 12% compared with the same period in 2017. The increase in sales was due to the group's significant growth in the US and in Asia. During the first half of the year, the recurring net profit reached 4.648 billion euros, a year-on-year increase of 28%, and the operating gross profit margin reached 21.4%, an increase of 2.9 percentage. The net profit of the entire group increased significantly, reaching 3.004 billion euros which is an increase of 41% compared with the same period last year. Separately, the performance of the total merchandise category increased by 16% in total sales, 16% in watches and jewellery, 15% in fashion and luggage, and 7% in wine and spirits.

Among the categories of fashion and luggage, Louis Vuitton's design director, Nicolas Ghesquière's outstanding performance and the menswear design director, Virgil Abloh's first big show created a mass craze amongst major medias and social networks was probably the root of the cause in its success for the first half of the year. In addition, DIOR men's design director, Kim Jones took office while Céline design director, Hedi Slimane took office (her first big show is about to be presented this September), which brought a lot of attention to the brand.
LVMH Chairman and CEO Bernard Arnault expressed his thoughts on its good results: "The excellent results in the first half of this year prove the strong enthusiasm of the brands and the revival of our strategy. Even with the harsh environment in the currency exchange rate in the first half of the year, the growth of our performance is remarkable and fortunate. The long-term perspective of each brand, while at the same time quality and creativity, maintaining the integration of modernity and tradition is the key to the success of our group's strategy. Although global demand is still strong, monetary and political uncertainty still exists. In this international context, we need to remain vigilant and rely on our talented team and entrepreneurial spirit to continue to lead the entire high-quality luxury industry in 2018."

In the financial report of LVMH, the key development achievements in the first half of 2018 were summarized:

  • Total sales and recurring operating profit are called double-digit growth
  • Strong growth in Asia and the United States
  • Excellent performance of the Louis Vuitton brand: maintaining a high level of profitability
  • The success of Christian Dior's new product development
  • Excellent performance of the Bvlgari brand
  • SEPHORA's significant sales growth in physical stores and e-commerce
  • DFS's profitability rebound

In LVMH's many outstanding achievements in performance for the first half of 2018 showed a welcoming spring. With Louis Vuitton and Dior leading the way, it seems to have brought solidarity for the group. In addition, the reshuffle of major brand designers has also seen a expansive increase of news. The shows are worth looking forward to for the second half of 2018.