LVMH, the world number one in luxury, published Monday July 27 stable results in the first halfhigher than expectations, in a luxury sector which is starting to regain momentum after three years of sluggishness.
In detail, the French group records stable net profit and margin over the first six months of the year and even experienced an acceleration in sales in the second quarter.
From January to the end of June, the net profit of the owner of Louis Vuitton, Dior, Celine, Moët & Chandon and Hennessy reached 5.7 billion euros – like last year -, “in a geopolitical and economic context that is still disrupted, amplified by the conflict in the Middle East”. This is more than expected by a consensus of analysts surveyed by Factset.
On the profitability side, the operating margin remains almost identical over one year, at 22.5%.
Half-year sales fell 3% to 38.6 billion eurosagain above expectations, with a negative currency impact of around 5% compared to last year. However, at comparable scope and exchange rates, sales increased by 2%.supported in particular by a rise in the wine and spirits sector (+5% at comparable scope and exchange rates), a division which had been struggling.
The turnover was also boosted by the strong performance of the activity watches and jewelry (+9% at comparable scope and exchange rates), a segment considered more resilient than other luxury products.
In revenge, the sales of the division Perfumes and Cosmetics remained stable on a comparable scope and exchange rate basis and showed a fall of -4% in published data.
The group’s performances – on a comparable basis – are improving in almost all regions. Asia excluding Japan – which after having been a luxury engine for years had slowed down significantly – saw its sales increase by 6% in the first half.
In Japan, turnover increased by 5%, and by 4% in the United States, one of the largest luxury markets. In Europe, it remained stable, LVMH said.
The trend also accelerated in the second quarter, with turnover remaining almost stable (+0.1%) at 19.5 billion euros, for organic growth of +3%.
“Turning point”
“The acceleration in growth in the 2nd quarter comes in particular from the great success of Jonathan Anderson’s first creations for Christian Dior, and the remarkable performance of Louis Vuitton’s new exceptional boutiques in Beijing and Seoul,” argued the CEO of the group, Bernard Arnault.
The fashion and leather goods division (Louis Vuitton, Dior, Celine, Fendi, etc.), LVMH’s main activity and the one most closely observed by analysts, saw its sales fall by 5% over the entire first half (to 18.1 billion euros, -1% like-for-like), but this figure masks an increase of 1% in the second quarter (on a comparable basis), which constitutes its first quarterly increase in two years.
Although this increase “is quite modest, at 1%, it is already much better than what we had seen recently”, underlines to AFP Luca Solca, specialist in the sector for the Bernstein firm.
After a series of gloomy quarters, the luxury market seems to be regaining its luster among consumers. According to a recent study by Bain, sales of consumer products in the sector are expected to grow by 2% to 4% in 2026.
A few days ago, the British Burberry announced an increase in turnover for the first quarter of its staggered financial year, supported by its sales on the American continent and in China.
The Swiss giant Richemont also reported quarterly sales that were much better than expected, driven by jewelry.
“I see a bit of a turning point in this second quarter,” analyzes Luca Solca. “For the second part of the year, if things continue to go in the right direction, either on the stock market in the United States or with the improvement of the real estate market in China, I believe that 3 to 4% growth for the luxury market could be achievable,” he adds.
