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Excellent first half


Excellent first half

Paris, 24 July 2019

The Christian Dior group recorded revenue of 25.1 billion euros in the first half of 2019, up 15%. Organic sales growth was 12% compared to the same period in 2018.

In the second quarter, revenue increased by 15% compared to the same period in 2018. Organic revenue growth was 12%, a performance in line with the trends of the beginning of the year. The United States, Asia and Europe saw good growth with, in particular, a rebound in France in the second quarter.

Profit from recurring operations was € 5 291 million for the first half of 2019, an increase of 14%. Operating margin reached 21.1%, broadly in-line with the first half of 2018. Group share of net profit amounted to € 1 317 million, an increase of 9%.

Highlights of the first half of 2019 include:

  • Further double-digit increases in revenue and profit from recurring operations,
  • Strong growth in Asia, the United States and Europe, particularly in France, which saw a rebound in the second quarter,
  • Good start to the year for Wines and Spirits,
  • Remarkable momentum at Louis Vuitton where profitability remains at an exceptional level,
  • Remarkable performance of Christian Dior Couture,
  • Rapid progress of LVMH’s perfumes and cosmetics flagship brands,
  • Good progress in jewelry, in particular for Bvlgari,
  • Sephora's strong revenue growth in stores and online,
  • Solid progress of DFS, particularly in Europe, benefiting from the rise in international travelers,
  • The completion in April of the acquisition of the Belmond hotel group, whose activity will be consolidated in the third quarter of 2019,
  • Announcement of the agreement with Stella McCartney House,
  • Operating free cash flow of €1.8 billion,
  • Net debt to equity ratio (“gearing”) of 9,1% as at the end of June 2019.

Key figures

Euro millions First half 2018 First half 2019* % change
Revenue 21 750 25 082 + 15 %
Profit from recurring operations 4 640 5 291 + 14 %
Group share of net profit 1 206 1 317 + 9 %
Cash from operations before changes in working capital  

5 448

7 394

Net cash from operating activities 3 123 4 268 n.a
Net Financial debt 2 259 3 435 + 52 %
Total equity 33 890 37 890 + 12 %

* Incorporating for the first time the effects of the application of IFRS 16 Leases

Revenue by business group


Euro millions
First half 2018 First half 2019 % change Reported  Organic*
Wines & Spirits 2 271 2 486 + 9 % + 6 %
Fashion & Leather Goods 8 594 10 425 + 21 % + 18 %
Perfumes & Cosmetics 2 877 3 236 + 12 % + 9 %
Watches & Jewelry 1 978 2 135 + 8 % + 4 %
Selective Retailing 6 325 7 098 + 12 % + 8 %
Other activities and eliminations (295) (298) - -
Total 21 750 25 082 + 15 % + 12 %

* With comparable structure and constant exchange rates. The currency effect for the Group is + 3%.

Profit from recurring operations by business group:

Euro millions First half 2018 First half 2019* % change
Wines & Spirits 726 772 + 6 %
Fashion & Leather Goods 2 775 3 248 + 17 %
Perfumes & Cosmetics 364 387 + 6 %
Watches & Jewelry 342 357 + 5 %
Selective Retailing 612 714 + 17 %
Other activities and eliminations (179) (187) -
Total 4 640 5 291 + 14 %

* Incorporating for the first time the effects of the application of IFRS 16 Leases.

Wines & Spirits: strong momentum in China and the United States

The Wines & Spirits business recorded organic revenue growth of 6%. Profit from recurring operations increased by 6%. The business group pursued its value strategy based on a strong policy of innovation and targeted investments in communication. The momentum was particularly strong in the United States, Asia and emerging markets. In the Champagne business, prestige vintages saw strong growth, while the price increase policy continued throughout the range. Hennessy cognac, which recorded solid growth, became the leading international premium spirits brand. The acquisition of Château du Galoupet, a prestige Côtes-de-Provence classified vintage wine, marks LVMH's entry into quality rosé wines.

Fashion & Leather Goods: exceptional performances at Louis Vuitton and Christian Dior

The Fashion & Leather Goods business group recorded organic revenue growth of 18%. Profit from recurring operations was up 17%. Louis Vuitton achieved remarkable growth in all its businesses and in all regions. The iconic lines and new creations equally contributed to the continued revenue growth. Of note during the first half were the Men’s and Women’s fashion shows which were enthusiastically received. Christian Dior had a remarkable performance during the first half. The new line, 30 Montaigne, which is a great success, illustrates the timeless elegance and savoir-faire of the Maison. An exceptional new store on the Champs- Elysées in Paris has temporarily taken over from the historic address of Avenue Montaigne, which is undergoing major renovations. Fendi celebrated Karl Lagerfeld's 54 years with the Maison and the Fendi family at several fashion shows which paid tribute to the designer. Celine is beginning to roll out its new store concept. The fashion shows presented in the first half, which were very well received, reflected the new identity of the Maison. Loro Piana recorded steady growth with, in particular, the success of a new personalized shoe service and a temporary boutique in New York. Loewe had an excellent performance, driven in particular by the success of its new collections. Rimowa had a very good start to the year. The other Maisons were further strengthened.

Perfumes & Cosmetics: excellent growth of flagship brands and rapid progress in Asia

The Perfumes & Cosmetics business group recorded organic revenue growth of 9%, mainly driven by the performance of flagship brands. Profit from recurring operations was up 6%. Parfums Christian Dior maintained strong momentum, driven by the vitality of its iconic perfumes and the rapid progress of its makeup and skincare lines. Guerlain had an excellent start to the year. Its iconic Rouge G lipstick and Abeille Royale skincare line were particularly strong. Guerlain's launch of the first digital transparency and product traceability platform  was a highlight of the first half. Parfums Givenchy benefited from its rapid progress in makeup and the good performance of its L'Interdit perfume. Benefit continued to grow its Eyebrow collection while Fresh continued its expansion in China.

Watches & Jewelry: good growth of Bvlgari and further repositioning of TAG Heuer

The Watches & Jewelry business recorded organic revenue growth of 4%, driven by jewelry. Profit from recurring operations was up 5%. Bvlgari made good progress in its stores and continued to gain market share. The iconic lines Serpenti, B.Zero1, Diva and Fiorever contributed to this performance. Its new high-end jewelry collection, Cinemagia, presented in June in Capri, was very well received. At Chaumet, the success of its Bee My Love collection and its iconic Liens and Josephine lines were the main growth drivers of the Maison. TAG Heuer continued to focus on its flagship lines, while Hublot continued to actively grow and develop its store network. The organisation of the first exhibition of the LVMH Swiss watch Maisons was announced for January 2020 in Dubai.

Selective Retailing: Strong growth at Sephora and sustained development of DFS in Europe

The Selective Retailing business group achieved organic revenue growth of 8%. Profit from recurring operations was up 17%. Sephora recorded strong revenue growth and gained market share in all of its locations. Already present in 34 countries, the brand continued to expand its store network while online sales advanced rapidly. Le Bon Marché continued to cultivate its unique identity and the exclusivity of its product offering. DFS performed very well in the Venice Galleria, its first European location. Although a slowdown in demand has been observed in Hong Kong and Macao over the past few months, DFS's performance in these markets was good in the first half.

Outlook 2019

In the buoyant environment of the beginning of this year, albeit marked by geopolitical uncertainties, the Christian Dior group will continue to pursue gains in market share through the numerous product launches planned before the end of the year and its geographic expansion in promising markets, while continuing to manage costs.

Our strategy of focusing on the highest quality across all our activities, combined with the dynamism and unparalleled creativity of our teams, will enable us to reinforce the Christian Dior group’s global leadership position in luxury goods once again in 2019.

An interim dividend of € 2.20 will be paid on December 10th, 2019.

Regulated information related to this press release is available on our internet site www.dior-finance.com

Limited review procedures have been carried out, the related report will be issued following the Board meeting.


Christian Dior group – Revenue by business group and by quarter

 Revenue first half 2019 (Euro millions)                                                                                                                               

2019                                   Wines &

Fashion & Leather Goods

Perfumes & Cosmetics

Watches &

Selective   Other activities Retailing and eliminations


First quarter 1 349 5 111 1 687 1 046 3 510 (165) 12 538
Second quarter 1 137 5 314 1 549 1 089 3 588 (133) 12 544
First half 2 486 10 425 3 236 2 135 7 098 (298) 25 082

 Revenue first half 2019 (organic growth compared to the first half of  2018)                                                            

2019                                   Wines &

Fashion & Leather Goods

Perfumes & Cosmetics

Watches &

Selective   Other activities Retailing and eliminations


First quarter +9% +15% +9% +4% +8% +11%
Second quarter +4% +20% +10% +4% +7% +12%
First half +6% +18% +9% +4% +8% -  +12%

 Revenue first half 2018 (Euro millions)                                                                                                                               

2018                                   Wines &

Fashion & Leather Goods

Perfumes & Cosmetics

Watches &

Selective   Other activities Retailing and eliminations


First quarter 1 195 4 270 1 500 959 3 104 (174) 10 854
Second quarter 1 076 4 324 1 377 1 019 3 221 (121) 10 896
First half 2 271 8 594 2 877 1 978 6 325 (295) 21 750

This document is a free translation into English of the original French financial release dated July 24, 2019.
It is not a binding document.
In the event of a conflict in interpretation, reference should be made to the French version, which is the authentic text.

Alternative performance measures
For the purposes of its financial communication, in addition to the accounting aggregates defined by IAS / IFRS, the Christian Dior group uses alternative performance measures established in accordance with the AMF’s position DOC-2015-12.
The table below lists these measures and the reference to their definition and their reconciliation with the aggregates defined by IAS / IFRS in published documents.

Measures Reference to published documents
Operating free cash flow IFR (condensed consolidated financial statements, consolidated cash flow statement)
Net financial debt AR (Note 1.20 of the appendix to the consolidated financial statements)
IFR (Note 19 of the appendix to the consolidated financial statements)
Gearing IFR (part 7, Comments on the consolidated Balance Sheet)
Organic growth IFR (part 1, Comments on the Consolidated Income Statement)

IFR : Interim Financial Report as of June 30, 2019
AR : 2018 Annual Report