LVMH Reports Increase in First Half Revenue, Despite "Cautious" Outlook for 2017

LVMH Moët Hennessy Louis Vuitton has reported revenue of €19.7 billion ($22.9 billion) in the first half of 2017, an increase of 15%. The world's leading luxury products group, which owns Louis Vuitton, Givenchy, Celine, Loewe, and Marc Jacobs, among other brands, said that all geographic areas continue to progress well and that organic revenue growth was 12% compared to the same period in 2016.

Bernard Arnault, Chairman and CEO of LVMH, stated: "LVMH has enjoyed an excellent first half, to which all our businesses contributed. In the current climate of geopolitical and economic instability, creativity and quality, the founding values of our Group, have more than ever become benchmarks for all. The increasing digitalization of our activities furthermore reinforces the quality of the experience we bring to our customers.”

He further noted, “In an environment that remains uncertain, we approach the second half of the year with caution. We will remain vigilant and rely on the entrepreneurial spirit and talent of our teams to further increase our leadership in the world of high quality products in 2017."

According to the group, highlights of the first half of 2017 include: “Outstanding momentum at Louis Vuitton; profitability remains at an exceptional level;” “LVMH's planned acquisition of Christian Dior Couture, one of the world's most iconic brands, finalized on July 3;” “Success of the new products at Christian Dior;” and “Continued strengthening of Sephora's omni-channel strategy;” among other takeaways.

As for the Paris-based conglomerate’s Fashion & Leather Goods business group, it recorded organic revenue growth of 14%. On a reported basis, revenue increased 17% and profit from recurring operations was up 34%.

The momentum at Louis Vuitton, "driven by its exceptional creativity, was demonstrated across all its product categories," per LVMH. The Cruise Collection presented at the Miho Museum in Kyoto, Japan, "was a great illustration of this," according to LVMH's report. The launch of new models resulting from the collaboration with the artist Jeff Koons and the cult New York skatewear brand, Supreme, were the highlights of the first half.

Fendi continued its strong growth and enriched its leather goods lines, notably with the new Kan-I model. Loro Piana strengthened its presence in Asia with several openings. Céline, Loewe and Kenzo "experienced good growth," whereas Marc Jacobs is said to have "strengthened its product offering and continued its restructuring."