By Laura McGuire
Profits at LVMH reached €42.2bn (£36.2bn) in the first half of the year, as the luxury conglomerate was boosted by demand for leather handbags and fashion goods.
The company, which is owned by one of the richest men in the world, Bernard Arnulat, said that revenue was up 15 per cent compared to last year and operating profit from recurring operations grew 13 per cent reaching €11.57m (£9.93m).
It reported particularly strong demand in its fashion and leather business which recorded organic revenue growth of 20 per cent in the first half of 2023, carried by sales in Louis Vuitton, Christian Dior and Marc Jacobs.
During the quarter, producer Pharrell Williams was named the creative director of Louis Vuitton menswear, bringing a new collection to the brand.
Its perfume and cosmetics sales also grew 15 per cent in the first half of 2023, as demand for Dior lip glosses performed particularly well in Asia.
However, its wine and spirit business did not perform well, the only category to see a decline with revenues down three per cent.
Its Hennessy cognac was impacted by the economic environment in the United States and by the continued high stock level of its retailers.
However its champagne business recorded an increase in revenue over the half year, driven by its “value-based strategy”.
The brand thanked an uptick in Asian tourism for sales increases at its Paris department store, La Samaritaine.
The luxury conglomerate, which also owns luxury brands such as Tiffany’s, was also announced as a sponsor of the Paris 2024 Olympic and Paralympic Games as a premium partner – the highest level for the event.
Its partnership will see the brand providing products for the olympic events as well as making medals and sponsoring athletes.
“This unprecedented partnership with the Paris 2024 Olympic and Paralympic Games will contribute to heightening the appeal of France around the world. It was only natural that LVMH and its Maisons be part of this exceptional international event,” Bernard Arnulat, chairman and chief of LVMH said.
