Moët Hennessy-Louis Vuitton Group (LVMH), a global leader in luxury goods, achieved revenues of 17.2 billion euros in the first half of 2016, an increase of 3% year-on-year. Compared with the same period last year, endogenous revenue increased by 4%. The US market is vibrant, the European market is on track (France is affected by the decline in tourism, with one exception), and the Asian market is steadily improving.
In the second quarter of 2016, the Group’s revenue increased by 2% year-on-year. Endogenous revenue increased by 4%, a slight increase from the previous quarter. The profit from continuing operations in the first half of 2016 reached 2.959 billion euros, which was the same as last year. Net profit attributable to the LVMH Group was 1.711 billion euros, an increase of 8% year-on-year.
Bernard Arnault, Chairman and CEO of LVMH Group, said: ‘The performance of LVMH in the first half of 2016 reflects the advantages of the Group’s business model more than ever. This business model enables the Group to Facing the unstable geopolitical environment and uncertain economic exchange rate situation, we can still continue to grow. Diversity of business, brand entrepreneurial style and flexible organization are all positive factors for the sustainable growth of the Group. We remain vigilant, But at the same time, I am full of confidence in the second half of this year and believe that we can rely on product quality and team talents to further consolidate the Group’s leadership in the world of high-quality luxury goods in 2016.
Main highlights in the first half of 2016:
· The US market is developing strongly and the European market continues to grow.
· Louis Vuitton logo series and new products were successful, and profitability remained high.
· Bulgari’s market share has grown, and Tag Heuer successfully readjusted its core business scope.
Cash flow before the change reached 3.7 billion euros, an increase of 8% year-on-year.
· Net debt ratio at the end of June 2016 was 20%.
Watch and Jewellery Division
In the first half of 2016, the endogenous revenue of the LVMH Group’s watch and jewelry division increased by 4%, and the profit from continuing operations remained stable. Bulgari continues to grow and outperform the market. The brand maintains a strong momentum for innovation, with the performance of the iconic B Zero 1 and Diva series being particularly striking. Good progress has been made in difficult market environments, Tag Heuer has won market share, core product development has had a positive impact, and the new Connected smartwatch has achieved great success.
Looking forward to 2016
Despite the geopolitical and exchange rate uncertainties, LVMH Group plans to launch a number of new products by the end of the year, develop and expand the geographic footprint, and manage and control costs while continuing to win market share. LVMH Group’s implementation of a strategy that focuses on the quality of all activities, combined with the team’s enthusiasm and unparalleled creativity, will surely consolidate the group’s global leadership in the luxury industry in 2016.