LVMH Reports Robust First Half of 2024 Despite Challenging Environment
LVMH Moët Hennessy Louis Vuitton has announced revenue of €41.7 billion for the first half of 2024. The company achieved 2% organic growth during this period, despite facing economic and geopolitical uncertainties. Notably, Europe and the United States saw steady growth, with Japan experiencing double-digit revenue increases. The rest of Asia demonstrated strong growth driven by Chinese consumers’ spending in Europe and Japan. In the second quarter alone, organic revenue growth stood at 1%.
Profit from recurring operations reached €10.7 billion, translating to an operating margin of 25.6%. This margin significantly surpasses pre-Covid levels. However, exchange rate fluctuations negatively impacted the period. The Group share of net profit amounted to €7.3 billion.
CEO Remarks
Bernard Arnault, Chairman and CEO of LVMH, remarked: “The results for the first half of the year reflect LVMH’s remarkable resilience, backed by the strength of its Maisons and the responsiveness of its teams in a climate of economic and geopolitical uncertainty. Driven as ever by our dual focus on desirability and responsibility, we have continued to work towards achieving the targets set out in our environmental and social action programs. In a year marked by our partnership with the Paris 2024 Olympic and Paralympic Games, we are honoured to share our creativity, excellent craftsmanship and deep commitment to society to make this event a resounding success and an opportunity for France to shine on the world stage. While remaining vigilant in the current context, the Group approaches the second half of the year with confidence, and will count on the agility and talent of its teams to further strengthen its global leadership position in luxury goods in 2024.”
Watches & Jewellery
The Watches & Jewellery division faced a 3% decline in organic revenue and a 19% drop in profit from recurring operations, heavily impacted by exchange rate fluctuations.
Tiffany & Co. launched new campaigns and collections, including the Tiffany Titan by Pharrell Williams. Bulgari marked its 140th anniversary with strong revenue from the new Aeterna high jewellery collection.
Chaumet, TAG Heuer, and Hublot also made significant strides in their respective areas.
Strategic Initiatives and Future Outlook
LVMH highlighted several strategic initiatives and milestones:
- Continued investments in communications and store renovations.
- Sustained innovation in jewellery and watches, particularly noted in the Tiffany & Co. store renovation program.
- Successful events such as LVMH Watch Week.
Additionally, the Group reported a significant increase in operating free cash flow, exceeding €3 billion.
LVMH’s first half of 2024 financial results show the company’s resilience amidst challenging conditions. Focusing on innovation, market expansion, and maintaining high margins, LVMH continues to lead in the global luxury market. The company’s performance highlights its adaptability in uncertain economic landscapes. LVMH remains confident in its growth trajectory for the rest of the year.