LVMH is not only growing compared to the annus horribilis 2020, but also in 2019. The French luxury group has seen a tenfold increase innet profit for the first half compared to 2020 at € 5.3 billion, registering a 62% increase over the first half of 2019, before the pandemic. Revenues of Bernard Arnault’s group have risen by 53% to 28.7 billion, with an increase of 11% on 2019, recording a performance substantially in line with the consensus of analysts which was aiming for revenues of € 28.4 billion.
The group boasted an acceleration in revenue growth over 2019 in the second quarter, equal to + 14%, after progressing around 8% in the first three months of the year. The operating result stood at 7.6 billion (+ 44% compared to the first half of 2019 and 4 times as much compared to last year), with an operating margin of 26.6%, an improvement of 5.5 points on the 2019. The company’s note also specifies that cash-flow has exceeded 5 billion, a level three times higher than that of 2019.
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The numbers in detail
More specifically, the fashion and leather goods division, the most important of the group, boasted organic growth of 81% compared to 2020 and 38% compared to 2019, reaching a record sales level of 13.8 billion.
In the breakdown by geographic area, however, the United States and Asia rose sharply. In any case, Europe too has recorded progressive growth. The operating result amounted to 5.6 billion, making up the lion’s share of the group. This is three times higher than in 2020 and up 74% over 2019.
As for the individual brands, then, the luxury group underlines the performance of Louis Vuitton, Christian Dior, Fendi, Loewe and Celine, which achieved record sales and margins. The Wines and Spirits division recorded an organic increase of 44% compared to last year and 12% on 2019 with a turnover of 2.7 billion. The operating result was 924 million (+ 68% and + 20%).