LVMH hails double-digit revenue growth, Sephora marks 181% profit spike
27 Jul 2022 --- Moët Hennessy Louis Vuitton (LVMH) delivered an “excellent” 34% profit increase in the first half of 2022. Despite the growth, the company expressed it will move forward with “vigilance” in the latter half of the year due to the current geopolitical and health situation.
The France-based company marked a rapid growth in fragrances and skincare and delivered double-digit organic revenue growth for all business groups. Revenue reached €36.7 billion (US$37.2 billion) in the first half of 2022, with profit from recurring operations at €1.02 billion (US$1.03 billion).
“LVMH has enjoyed an excellent start to the year, to which all of our business groups contributed. We approach the second half of the year with confidence, but given the current geopolitical and health situation, we will remain vigilant and count on the agility and talent of our teams to further strengthen our global leadership position in luxury goods in 2022,” says Bernard Arnault, Chairman and CEO of LVMH.
The company has strong growth in Europe, Japan and the US, with a “ remarkable performance” by the Fashion & Leather Goods business group, particularly Louis Vuitton, Christian Dior, Fendi, Celine, Loro Piana and Loewe, which gained market share across the board and achieved “new record highs” for profitability.
The company hailed an “excellent” first half despite a disrupted environment.Makeup rebound
The Perfumes & Cosmetics business segment recorded organic revenue growth of 13% in the first half of 2022. Profit from recurring operations was down 1% due to a highly selective policy in distribution and promotions, LVMH explains.
“Parfums Christian Dior performed remarkably well, strengthening its leadership in all its key markets. Sauvage confirmed its position as the world’s leading perfume, and the iconic women’s fragrances J’adore and Miss Dior saw continued success.”
Givenchy benefited from the success of its L’Interdit perfume. Maison Francis Kurkdjian collaborated with the Château de Versailles, supporting the creation of a Jardin du parfumeur.
Makeup also contributed to the company’s “very good results.” Guerlain continued to grow, driven notably by the vitality of its Abeille Royale skincare, its Aqua Allegoria collection and its Parfumerie l’Art et la Matière.
The company was a strong proponent of creating a cosmetic products scoring system providing consumers with clear, transparent and comparable information. Last year, LVMH acquired Buly to expand its perfumes and cosmetics portfolio.
Sephora: Strong momentum
Investments in Sephora’s omnichannel strategy continued with the aim of continuously improving the purchasing experience of its customers both online and in-store, LVMH underscores.
“Sephora enjoyed an excellent performance with a strong rebound in its in-store activity. Momentum was particularly strong in North America, France and the Middle East.”
The brand’s revenue was up 22% in the first half of 2022, with profit from recurring operations up 181%.
Earlier this year, Sephora sold its Russia-based subsidiary sales, choosing to operate under the “Ile de Beauté” brand.
Last year, LVMH announced it was collaborating with global specialty material provider Eastman for Dior Addict Lip Maximizer’s product line.
Cultural focus on fashion
Europe, Japan and the US delivered strong growth.
LVMH recorded 24% organic revenue growth in the first half of the year for the Fashion & Leather Goods business group.
“Driven by an exceptional creativity and with a major cultural focus, Louis Vuitton had an excellent first half across all its business activities and maintained its profitability at an exceptional level.”
Nicolas Ghesquière presented, for the first time at the Musée d’Orsay his Women’s Autumn-Winter 2022 collection and chose the Salk Institute in San Diego, California, for his 2023 Cruise show. Louis Vuitton Maison also reopened in the iconic L’Huîtrière (Oyster House).
“After three years of renovations, the historic birthplace of the Maison at 30 Avenue Montaigne in Paris reopened, celebrating its excellent know-how, its passion for couture, its elegance and culture, and offering a new holistic experience unique to Dior. Fendi recorded solid growth, driven by the success of the Kim Jones collections.”
By Andria Kades
