Moët Hennessy-Louis Vuitton Group (LVMH), a global leader in luxury goods, achieved revenues of 19.7 billion euros in the first half of 2017, a year-on-year increase of 15%. Compared with the same period last year, endogenous revenue increased by 12%. Good progress has been made in all geographic regions. In the first half of the year, the Group benefited from a favorable base of comparison, especially in the Asian and French markets, the latter of which also affected marketing activities last year due to the decline of the tourism industry. Of course, based on current trends alone, no reasonable guess can be made about the full-year results.
In the second quarter of 2017, the group’s revenue increased by 15% year-on-year (acquired German premium luggage brand Rimowa), and endogenous revenue increased by 12%. The profit from continuing operations in the first half of 2017 reached 3.64 billion euros, an increase of 23% year-on-year. Net profit attributable to the LVMH Group was 2.119 billion euros, a year-on-year increase of 24%.
Bernard Arnault, Chairman and Chief Executive Officer of LVMH Group, said: ‘LVMH’s strong performance in the first half of 2017 has helped all of the Group’s businesses. In the current unstable geopolitics and uncertain economy Under the current circumstances, LVMH’s creativity, quality and value concept have become the benchmark for the entire industry. The digitization of group activities has further improved the quality of customer experience. In an environment where there is still uncertainty, we enter with caution Six months. We will continue to be vigilant and rely on our entrepreneurial spirit and team talent to further consolidate the Group’s leadership in the premium luxury world in 2017. ‘
Main highlights in the first half of 2017:
· Double-digit growth in group revenue and profit from continuing operations.
· European, Asian and US markets are growing well.
· Louis Vuitton is gaining momentum and profitability remains high.
· Bulgari continued to grow, and the market responded positively to the new TAG Heuer products.
· Cash flow before the change reached 4.5 billion euros, an increase of 23% year-on-year.
· Net debt ratio at the end of June 2017 was 14%.
Watch and Jewellery Division
In the first half of 2017, the endogenous revenue of the LVMH Group’s watch and jewelry division increased by 13%, revenue increased by 14%, and profit from continuing operations increased by 14%. Bulgari excels and continues to gain market share. The jewellery and watchmaking business has grown particularly significantly in the Chinese and European markets, thanks to the success of the iconic Serpenti and B-Zero 1 series and the new Octo Finissimo watches. TAG Heuer has achieved solid revenue growth in difficult market environments. The new timepieces of Carrera, Submarine and F1 series have achieved great success and launched a new generation of smart watches. Hublot continues to develop steadily.
Looking forward to 2017
Despite the geopolitical and exchange rate uncertainties, LVMH Group plans to launch a number of new products by the end of the year, develop and expand the geographic footprint, and manage and control costs while continuing to win market share. LVMH Group’s implementation of a strategy that focuses on the quality of all activities, combined with the team’s enthusiasm and unparalleled creativity, will once again consolidate the group’s global leadership in the luxury industry in 2017.