LVMH H1 Results

Luxury Goods

LVMH demonstrated good resilience in the first half of 2009 – Exceptional performance at Louis Vuitton – Market share gains.

LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of €7.8 billion (A$13.4 billion) in the first half of 2009, reflecting a slight increase over the same period in 2008 despite the global financial crisis and having created a hard act to follow in 2008.

Profit from recurring operations was just over €1.36 billion (A$2.33 billion). Profits increased noticeably in the brands that control their distribution, such as Louis Vuitton. However, brads distributed by third parties, particularly in the Watches & Jewellery and Wines & Spirits divisions, suffered a massive destocking impact by these distributors.

Emerging markets now account for 30% of group revenue and these have continued to perform well through the crisis.

Bernard Arnault, Chairman and CEO of LVMH, commented: “The first half results once again demonstrate the exceptional appeal of our brands as well as the effectiveness of our strategy, particularly remarkable given the global economic crisis.” Singling out the star performer of the group, Arnault continued, “Louis Vuitton has had a particularly exceptional first half of the year, probably the best in the luxury universe, with double-digit revenue growth and exceptional profitability.”

Fashion & Leathergoods

The Fashion & Leather Goods business group saw revenue growth of 8% in the first half of 2009. Profit from recurring operations stood at €919 million (A$1.57 billion) accounting for two thirds of the group total. The Louis Vuitton brand itself registered double-digit revenue growth in the first half of 2009 and strengthened its position in all market regions, including showing good resilience in the USA.

Watches & Jewellery

Revenue from Watches & Jewelry decreased by 17% in the first half of 2009. Profit from recurring operations stood at €20 million (A$34.3 million) during a particularly difficult environment marked by destocking at retailers. TAG Heuer won market share in the United States thanks to its targeted actions, and continued its expansion in Asia. The division’s newest acquisition, Hublot, showed good resilience and opened its new Manufacture near Geneva. Zenith celebrated 40 years of El Primero and Montres Dior continued to develop its Christal line. Chaumet, De Beers and Fred concentrated on improving the productivity of their networks and their boutiques.

Source: LVMH