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LVMH delivers record first half performance

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Paris, July 26, 2021

LVMH Moët Hennessy Louis Vuitton, the world’s leading high-quality products group, recorded revenue of 28.7 billion euros in the first half of 2021, up 56% compared to the same period in 2020. Organic revenue growth was 53% compared to 2020 and 11% compared to 2019. This performance reflects accelerated growth in the second quarter of 2021, which saw organic revenue increase by 14% compared to 8% in the first quarter.
The first half of this year marks a return to strong growth momentum after a severely disrupted year in 2020 resulting from the global pandemic. The largest business group, Fashion & Leather Goods, achieved record levels of revenue with organic growth of 81% compared to 2020, and 38% compared to 2019. The United States and Asia are up sharply since the start of the year while Europe is experiencing a gradual recovery.

Profit from recurring operations was €7 632 million for the first half of 2021, up 44% compared to the first half of 2019 and more than four times higher than that of 2020. Operating margin reached 26.6%, up 5.5 points compared to 2019. Profit from recurring operations for the Fashion & Leather Goods business group stood at €5 660 million for the first half, more than three times that of 2020, and up 74% compared to 2019. Group share of net profit amounted to €5 289 million, up 62% compared to 2019 and 10 times higher than 2020. Operating free cash flow exceeded €5 billion, more than three times that of 2019.

Bernard Arnault, Chairman and CEO of LVMH, said: “LVMH has enjoyed an excellent half-year and is reaping the benefits of having continued to innovate and invest in its businesses throughout the pandemic despite being in the midst of a global crisis. The creativity, the high-quality and enduring nature of our products and the sense of responsibility that drives us, have been critical in enabling us to successfully withstand the effects of the pandemic; they will remain firmly embedded in all our Maisons, thereby ensuring their continued desirability. Highlights from the first half include the integration of the Maison Tiffany and the inauguration of La Samaritaine after an ambitious renovation program. Within the current context, as we emerge from the health crisis and see a recovery in the global economy, I believe that LVMH is in an excellent position to continue to grow and further strengthen our lead in the global luxury market in 2021. As France is the principal recruitment area and the country of origin of many of our products, the growth of LVMH benefits the country today, and even more tomorrow, with all our Maisons being proud to make their contributions.”

Highlights of the first half of 2021 include:

  • Excellent start to the year, in particular for the largest brands, during a period marked by the first signs of an exit from the current health crisis yet also by a continued lack of return to international travel,

  • Remarkable performance by the Fashion & Leather Goods business group, particularly Louis Vuitton, Christian Dior, Fendi, Loewe and Celine which are gaining market share across all geographies and achieving record levels of revenue and profitability,

  • Sustained revenue growth in Asia and the United States and a gradual recovery in Europe,

  • Successful integration of Tiffany, which has performed extremely well since its acquisition,

  • Strong growth in direct sales to customers, both in-store and remotely,

  • Travel retail and hotel activities still held back by the limited recovery in international travel,

  • Remarkable operating free cash flow.

Key figures

Euro millions

First half
2020

First half
2021

% change
2021/2020

% change
2021/2019

Revenue

18 393

28 665

+ 56 %

+ 14 %

Profit from recurring operations

1 671

7 632

x 4.6

+ 44 %

Group share of net profit

522

5 289

x 10.1

+ 62 %

Operating free cash flow

(1 721)

5 288

-

x 3.1

Net Financial debt

8 230

15 265

x 1.9

x 1.8

Total equity

37 532

42 624

+ 14 %

+ 21 %

Revenue by business group:

Euro millions

First half 2020

First half 2021

% change
First half

2021/2020
Reported Organic*

% change
First half 2021/2019
Organic

Wines & Spirits

1 985

2 705

+ 36 %

+ 44 %

+ 12 %

Fashion & Leather Goods

7 989

13 863

+ 74 %

+ 81 %

+ 38 %

Perfumes & Cosmetics

2 304

3 025

+ 31 %

+ 37 %

- 3 %

Watches & Jewelry

1 319

4 023

x 3.1

+ 71 %

+ 5 %

Selective Retailing

4 844

5 085

+ 5 %

+ 12 %

- 25 %

Other activities and eliminations

(48)

(36)

-

-

-

Total LVMH

18 393

28 665

+ 56 %

+ 53 %

+ 11 %

* With comparable structure and constant exchange rates. The structural impact for the Group compared to the first half of 2020 was +10% linked entirely to the consolidation of Tiffany & Co. for the first time. The currency effect was - 7 %.

Profit from recurring operations by business group:

Euro millions

First half
2020

First half
2021

% change
2021/2020

% change
2021/2019

Wines & Spirits

551

924

+ 68 %

+ 20 %

Fashion & Leather Goods

1 769

5 660

x 3.2

+ 74 %

Perfumes & Cosmetics

(30)

393

-

+ 1 %

Watches & Jewelry

(17)

794*

-

x 2.2

Selective Retailing

(308)

131

-

- 82 %

Other activities and eliminations

(294)

(270)

-

-

Total LVMH

1 671

7 632

x 4.6

+ 44 %

* incomparable structural impact.

Wines & Spirits: sustained demand in the United States and strong rebound in China

The Wines & Spirits business group recorded organic revenue growth of 44% in the first half of 2021 compared to the same period of 2020 and 12% compared to that of 2019. Profit from recurring operations was up 20% compared to the first half of 2019. Champagne volumes rose 10% compared to the first half of 2019, driven by the good momentum in Europe and the United States. Hennessy cognac volumes increased by 6% compared to 2019, limited by supply constraints. China, which was the first market to have been impacted by the pandemic in early 2020, experienced a strong rebound over the first half of this year. Demand in the United States held up well. LVMH took a 50% equity stake in the Champagne Maison Armand de Brignac.

Fashion & Leather Goods: remarkable performances at Louis Vuitton, Christian Dior, Fendi, Loewe and Celine.

The Fashion & Leather Goods business group recorded organic revenue growth of 81% in the first half of 2021 compared to the same period of 2020. Organic revenue growth compared to the first half of 2019 was 38%. Profit from recurring operations was up 74% compared to the first half of 2019 and represents more than three times that of 2020. Louis Vuitton, driven as always by its creativity and the artisanal excellence of its products, delivered a remarkable performance and maintained its profitability at an exceptional level. Due to the desirability of its iconic designs, purchases of many are subject to a waiting list. The Maison continues to offer its customers a unique experience, whether in its stores or through its many original initiatives. Christian Dior had an excellent first half with strong growth among local customers across all its product categories. Several innovations were unveiled during the first half. Celine’s ready-to-wear and leather goods collections created by Hedi Slimane were hugely successful. Loewe continues to surprise with its innovative digital concepts in connection with the new collections created by J.W. Anderson. Fendi presented a ready-to-wear capsule by Kim Jones, the first collections of which debuted in July. Marc Jacobs performed very well over the period.

Perfumes & Cosmetics: rapid growth in direct sales and continued selective distribution

The Perfumes & Cosmetics business group recorded organic revenue growth of 37% in the first half of 2021 compared to the same period of 2020. Organic revenue was down 3% compared to the first half of 2019. Profit from recurring operations was up 1% compared to the first half of 2019. The Group’s major brands have maintained a policy of selective distribution unlike many competitors who have increased their proportion of discounted sales or sales in parallel networks, as a means of supporting their revenues. Our brands are benefiting from continued growth in online sales, partially offsetting the impact of the suspension of international travel and the closure of many points of sale. Parfums Christian Dior enjoyed a strong acceleration in its business with local customers, extending the recovery that began at the end of 2020. The continued success in iconic perfumes Sauvage, Miss Dior and J'Adore, the roll-out of Rouge Dior lipstick and the rapid progress of skincare lines Prestige and Capture contributed to the excellent performance of the Maison. Guerlain showed very positive momentum, driven by skincare, thanks to the exceptional vitality of Abeille Royale and Orchidée Impériale. Parfums Givenchy is gaining market share due to the success of L’Interdit perfume and the promising relaunch of the Irresistible collection. Fresh confirmed its presence in ultra-premium skincare and Maison Francis Kurkdjian continues to post remarkable growth.

Watches & Jewelry: strong rebound in own stores and integration of Tiffany

The Watches & Jewelry business group recorded organic revenue growth of 71% in the first half of 2021 compared to the same period in 2020 and 5% compared to that in 2019 (excluding Tiffany). Profit from recurring operations was up 122% compared to the first half of 2019 and 27% excluding the effect of the integration of Tiffany. The first half saw the integration for the first time of iconic jewelry Maison Tiffany, which has benefited from the new team's focus on its iconic products. Honouring its long-standing tradition of expressing love and diversity, the Maison has successfully launched its first engagement ring for men, the Charles Tiffany Setting. Bvlgari saw good growth in jewelry, in particular in its network of own stores. The new Magnifica high-end jewelry collection was unveiled in June. Chaumet inaugurated its new exhibition “Joséphine et Napoléon” at its recently restored historic address at 12 place Vendôme. In watchmaking, TAG Heuer signed a major partnership with Porsche and launched the Carrera Porsche chronograph to mark the occasion. Official watch for the Euro 2020, Hublot enjoyed high visibility during the second quarter.

Selective Retailing: good performance from Sephora; DFS still held back by a limited recovery in international travel

In Selective Retailing, organic revenue was up 12% compared to the first half of 2020 and down 25% compared to the first half of 2019. Profit from recurring operations was once again positive but was down 82% compared to the first half of 2019. Sephora achieved a good level of performance in a commercial environment which was impacted by store closures in several countries in Europe. Online sales continue to progress all over the world. A strategic partnership has been signed with Zalando, which is expected to launch in Germany by the end of the year. DFS continued to be impacted by the lack of recovery in international travel to most destinations. Following an ambitious renovation program, faithful to the history of this flagship store and maintaining high environmental standards, the reopening of La Samaritaine on June 23 was an historic success.

Outlook 2021

Within the context of emerging from the health crisis, the Group will maintain a strategy focused on continuously strengthening the desirability of its brands, by relying on the exceptional quality of its products and the excellence of their distribution.
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 LVMH’s global leadership position in luxury goods once again in 2021.

An interim dividend of 3 Euros will be paid on Thursday December 2, 2021.

Regulated information related to this press release, the half-year results presentation and the half-year financial statement are available on our internet site www.lvmh.com.

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

ANNEX

The condensed consolidated financial statements for the first half of 2021 are included in the PDF version of the press release.

LVMH – Revenue by business group and by quarter

Revenue first half 2021 (Euro millions)

2021

Wines & Spirits

Fashion & Leather Goods

Perfumes & Cosmetics

Watches & Jewelry

Selective Retailing

Other activities and eliminations

Total

First quarter

1 510

6 738

1 550

1 883

2 337

(59)

13 959

Second quarter

1 195

7 125

1 475

2 140

2 748

23

14 706

First half

2 705

13 863

3 025

4 023

5 085

(36)

28 665

Revenue first half 2021 (organic growth compared to the first half of 2020)

2021

Wines & Spirits

Fashion & Leather Goods

Perfumes & Cosmetics

Watches & Jewelry

Selective Retailing

Other activities and eliminations

Total

First quarter

+ 36 %

+ 52 %

+ 18 %

+ 35 %

- 5 %

-

+ 30 %

Second quarter

+ 55 %

x 2.2

+ 67 %

x 2.2

+ 31 %

-

+ 84 %

First half

+ 44 %

+ 81 %

+ 37 %

+ 71 %

+ 12 %

-

+ 53 %

Revenue first half 2021 (organic growth compared to the first half of 2019)

2021

Wines & Spirits

Fashion & Leather Goods

Perfumes & Cosmetics

Watches & Jewelry

Selective
Retailing

Other activities and eliminations

Total

First quarter

+ 17 %

+ 37 %

- 4 %

+ 1 %

-30%

-

+ 8 %

Second quarter

+ 7 %

+ 40 %

- 1 %

+ 9 %

-19%

-

+ 14 %

First half

+ 12 %

+ 38 %

- 3 %

+ 5%

- 25%

-

+ 11 %


Revenue first half 2020 (Euro millions)

2020

Wines & Spirits

Fashion & Leather Goods

Perfumes & Cosmetics

Watches & Jewelry

Selective Retailing

Other activities and eliminations

Total

First quarter

1 175

4 643

1 382

792

2 626

(22)

10 596

Second quarter

810

3 346

922

527

2 218

(26)

7 797

First half

1 985

7 989

2 304

1 319

4 844

(48)

18 393

Revenue first half 2019 (Euro millions)

2019

Wines & Spirits

Fashion & Leather Goods

Perfumes & Cosmetics

Watches & Jewelry

Selective Retailing

Other activities and eliminations

Total

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

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

Indicators

Reference to published documents

Free operating cash flow

URD (consolidated accounts, consolidated cash flow statement)

Net Financial debt

URD (notes 1.22 and 19 of the appendix to the consolidated accounts)

Gearing

URD (part 2, Comments on the consolidated balance sheet)

Organic Growth

URD (part 1, Comments on the consolidated income statement)

URD: Universal Registration Document as at 31 December 2020

LVMH

LVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits by a portfolio of brands that includes Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier, Château d’Yquem, Domaine du Clos des Lambrays, Château Cheval Blanc, Colgin Cellars, Hennessy, Glenmorangie, Ardbeg, Belvedere, Woodinville, Volcán de Mi Tierra, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape Mentelle, Newton, Bodega Numanthia, Ao Yun, Château d'Esclans and Château du Galoupet. Its Fashion and Leather Goods division includes Louis Vuitton, Christian Dior Couture, Celine, Loewe, Kenzo, Givenchy, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Loro Piana, RIMOWA, Patou. LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums Givenchy, Kenzo Parfums, Perfumes Loewe, Benefit Cosmetics, Make Up For Ever, Acqua di Parma, Fresh, Fenty Beauty by Rihanna and Maison Francis Kurkdjian. LVMH's Watches and Jewelry division comprises Bvlgari, Tiffany & Co, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred and Hublot. LVMH is also active in selective retailing as well as in other activities through DFS, Sephora, Le Bon Marché, La Samaritaine, Groupe Les Echos, Cova, Le Jardin d’Acclimatation, Royal Van Lent, Belmond and Cheval Blanc hotels.

This document may contain certain forward looking statements which are based on estimations and forecasts. By their nature, these forward looking statements are subject to important risks and uncertainties and factors beyond our control or ability to predict, in particular those described in LVMH’s Universal Registration Document which is available on the website (www.lvmh.com). These forward looking statements should not be considered as a guarantee of future performance, the actual results could differ materially from those expressed or implied by them. The forward looking statements only reflect LVMH’s views as of the date of this document, and LVMH does not undertake to revise or update these forward looking statements. The forward looking statements should be used with caution and circumspection and in no event can LVMH and its Management be held responsible for any investment or other decision based upon such statements. The information in this document does not constitute an offer to sell or an invitation to buy shares in LVMH or an invitation or inducement to engage in any other investment activities.”

LVMH CONTACTS

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Chris Hollis
LVMH
+ 33 1 44 13 21 22

Media
Jean-Charles Tréhan
LVMH
+ 33 1 44 13 26 20



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