LVMH SALES UP 28% IN FIRST HALF, DESPITE CHINA
PARIS (Archyde.com) – LVMH on Tuesday reported a 28% annual increase in sales in the first half, citing the sharp increase observed in Europe and the United States since the start of the year which has offset the decline in revenue in China linked to health restrictions in the face of COVID-19 in the country.
Against the backdrop of a resumption of social activities in many regions, the French luxury giant benefited from a solid rebound in demand for its high-end clothing brands, despite the inflationary climate.
However, he refrained from announcing annual forecasts due to the geopolitical and health context.
Over the first six months of the year, LVMH sales amounted to 36.72 billion euros, i.e. organic growth – at comparable structure and exchange rates – of 21%, driven in particular by the fashion business. and leather goods (+24%).
LVMH’s current operating profit amounted to 10.23 billion euros in the first half, representing growth of 34% over one year.
The group share of net profit amounted to 6.53 billion euros, up 23% on an annual basis.
In a press release, the CEO of the French luxury giant, Bernard Arnault, underlined the “excellent start to the year in which all” the group’s businesses are participating.
“We are approaching the second half of the year with confidence, but in the current geopolitical and health context, we will remain vigilant (…)”, he declared.
In the second quarter, LVMH’s turnover recorded organic growth of 19% to 18.73 billion euros.
In Asia, excluding Japan, organic revenue declined by 8% year-on-year, due to the containment measures imposed in certain Chinese cities since mid-March, even if the rise in prices made it possible to mitigate the decline in sales.
(Mimosa Spencer report, written by Jean Terzian, edited by Jean-Michel Bélot and Jean-Stéphane Brosse)