LVMH Moët Hennessy Louis Vuitton posted boosted second quarter revenue results this week, with its total sales for the latest 3-month period “lifted by accelerating momentum in its fashion and handbag division, including from its standout Louis Vuitton and Christian Dior mega-brands,” as well as its roughly 70 other brands, which range from fashion and cosmetics brands to spirits companies and real estate ventures.
Second quarter sales for the Bernard Arnault-chaired luxury goods conglomerate, which is the largest in the world, rose 15 percent to $13.93 billion, 5 percent greater than analysts’ expectations for the period. The Fashion & Leather Goods group, in particular, recorded organic revenue growth of 18 percent, with “Louis Vuitton achieving remarkable growth in all its businesses and in all regions,” according to a statement from LVMH. It also noted that “Louis Vuitton’s profitability remains at an exceptional level, while continuing its robust investment policy.”
LVMH’s Financial Director Jean-Jacques Guiony, pointed to the group’s marquee brand’s “temporary pop-up stores [as helping to boost] consumer interest.” Guiony also name-checked DJ-slash-designer Virgil Abloh, who has courted young consumers’ attention, and helped Louis Vuitton grow its menswear lines.
Meanwhile, its Christian Dior brand, which Reuters estimates is less than a third of Vuitton’s size, was one of the standouts of the second quarter, with sales growth exceeding the 20 percent of the broader fashion and leather goods unit.
The publication noted that LVMH owes much of its “momentum to attempts to attract young shoppers with novel marketing techniques, investments in e-commerce and a shake-up in their products and designs.” This is compounded by what Guiony calls “a noticeable improvement between the first quarter and the second quarter” in terms of Chinese demand.
The group also pointed to “rapid progress of LVMH’s perfumes and cosmetics flagship brands,” the latter of which includes its Fenty Beauty joint venture with music mega-star Rihanna. Specifically addressing the star’s venture, which “will intensify its efforts to gain market share in Asia,” LVMH asserted that it “reaped the benefits of a very extensive innovation plan, reaffirmed its success in new categories, including a lineup of concealers available in 50 different shades, bronzers, setting powders and lip glosses, and continued its strong social media campaign.”
Given the ever-growing beauty market, particularly amongst millennial and Gen-Z consumers, LVMH-owned multi-bread beauty retailer “Sephora’s strong revenue growth in stores and online” was also of note.
For the first fiscal half of the year as a whole, a period that ended on June 30, the group saw sales of $28.01 billion.