LVMH, the world’s largest luxury firm, reported Tuesday that its first-half net profits rose 30% to 8.48 billion euros ($9.34 billion) due to robust growth in Asia and Europe.
The group, which includes Louis Vuitton, Dior, and Tiffany, had 42.2 billion euros in sales in January–June, up 15% from previous year.
LVMH’s fashion and leather goods sector grew 17% to 21.2 billion euros.
Sales rose in all categories except wines and spirits, which fell 4%.
“LVMH achieved outstanding results during a six-month period of ongoing economic and geopolitical uncertainty,” stated CEO Bernard Arnault.
Arnault said the company was enthusiastic about the second half of the year.
Selective retailing, including Sephora perfume boutiques, saw revenue rise 25% to 8.4 billion euros.
DFS duty free shops also returned to profitability.
“DFS benefited from the gradual recovery in international travel and, in particular, from tourists returning to the flagship destinations of Hong Kong and Macau,” the business stated.
“China slowed last year and the US helped us,” geographically. Jean-Jacques Guiony, LVMH’s CFO, told reporters that this year is different.
Asia’s sales rose 23% in the first half of the year, while the US’s dropped 1% in April–June.
“We saw a certain slowdown in the United States notably with the ‘aspirational’ clientele, that is to say in secondary cities, entry-level products, what we sell online,” added Guiony.
“It isn’t a catastrophe, we’re staying at the 2022 level which was very much above 2021,” he said.
LVMH sells 30% in Asia excluding Japan. Europe is 23% and the US 24%.
