LVMH achieves an excellent first half of 2022
On Tuesday 26 July, LVMH, the world's leading luxury group, announced its results for the first half of 2022. The turnover of 36.7 billion euros largely exceeds the forecasted estimates.
By Eva Morletto27 juillet 2022
LVMH posted a net profit of 6.5 billion euros, up 23% compared to the first half of 2021. Last year's results had already been defined as a record.
Among the most profitable divisions, the Fashion and Leather Goods sector, represented by the iconic brands Christian Dior, Céline, Louis Vuitton, Fendi and Loro Piana, alone posted sales of 18 billion euros, generating an increase of 31% compared to the same period last year.
Overall, total sales for all brands and companies under the LVMH umbrella were a record 36.7 billion euros. Bloomberg's estimate was 35.4 billion.
As for the other divisions, Wines and Spirits recorded 3.3 billion in sales and an increase of 23% compared to the first half of 2021. Perfumes and Cosmetics, meanwhile, increased its sales by 20%, for a total of 3.6 billion euros. The Selective Retailing division also posted a record figure: +30%. This performance can be seen in the good results of Sephora.
In July, the beauty retailer sold all of its 88 shops in Russia - closed since the beginning of the conflict with Ukraine - to the local general manager. The amount of the transaction is not known.
The renewal of Tiffany's image and the positive dynamics of Bulgari and Tag Heuer in particular have also led to a very good performance in the Watches and Jewellery sector, with the latter showing a 22% increase compared to the first half of last year and sales of around 5 billion.
Geographically, while Asia stagnated due to health restrictions in China, Europe and the United States saw a strong increase in turnover.
In a statement, CEO Bernard Arnault said he was satisfied with the results achieved in all sectors of the luxury group, but maintained a cautious attitude towards the still unstable health and geopolitical context, which could affect the figures for the rest of the year.
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