LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of €19.7 billion in the first half of 2017, an increase of 15%. Organic revenue growth was 12% compared to the same period in 2016. All geographic areas continue to progress well. During the first half of the year, the Group benefited from a favourable comparison base, particularly in Asia but also in France, where activity was impacted last year by a decline in tourism. The current trends cannot reasonably be extrapolated for the full year.

In the second quarter, revenue increased by 15% compared to the same period in 2016, with the notable integration for the first time of Rimowa. Organic revenue growth was 12%.

Profit from recurring operations was €3 640 million for the first half of 2017, an increase of 23%. Operating margin reached 18.5%, an increase of 1 percentage point. Group share of net profit amounted to € 2 119 million, an increase of 24%.

Bernard Arnault, Chairman and CEO of LVMH, commented:

“LVMH has enjoyed an excellent first half, to which all our businesses contributed. In the current climate of geopolitical and economic instability, creativity and quality, the founding values of our Group, have more than ever become benchmarks for all. The increasing digitalization of our activities furthermore reinforces the quality of the experience we bring to our customers. In an environment that remains uncertain, we approach the second half of the year with caution. We will remain vigilant and rely on the entrepreneurial spirit and talent of our teams to further increase our leadership in the world of high quality products in 2017.”

Highlights of the first half of 2017 include:

  • Double-digit increases in revenue and profit from recurring operations;
  • Good growth in Europe, Asia and the United States;
  • A good start to the year for Wines and Spirits;
  • Outstanding momentum at Louis Vuitton; profitability remains at an exceptional level;
  • LVMH’s planned acquisition of Christian Dior Couture, one of the world’s most iconic brands, finalized on July 3;
  • Integration of Rimowa, a leader in premium-class luggage;
  • Success of the new products at Christian Dior;
  • Growth at Bvlgari and excellent response to TAG Heuer’s new products;
  • Continued strengthening of Sephora’s omnichannel strategy;
  • Cash from operations before changes in working capital of €4.5 billion, an increase of 23%
  • Net debt to equity ratio of 14% as of the end of June 2017.

Key figures

Euro millions First half 2016 First half 2017 % change
Revenue 17 188 19 714 + 15 %
Profit from recurring operations 2 959 3 640 + 23 %
Group share of net profit 1 711 2 119 + 24 %
Cash from operations* 3 650 4 501 + 23 %
Net Financial Debt 5 303 3 957 – 25 %
Total equity 26 073 28 292 + 9 %

* Before changes in working capital.

Revenue by business group:

Euro millions First half 2016 First half 2017 % change
Reported Organic*
Wines & Spirits 2 056 2 294 + 12 % + 10 %
Fashion & Leather Goods 5 885 6 899 + 17 % + 14 %
Perfumes & Cosmetics 2 337 2 670 + 14 % + 12 %
Watches & Jewelry 1 609 1 838 + 14 % + 13 %
Selective Retailing 5 480 6 280 + 15 % + 12 %
Other activities and eliminations (179) (267)

* With comparable structure and constant exchange rates. The exchange rate impact is +2% and the structural impact is +1%.

Profit from recurring operations by business group:

Euro millions First half 2016 First half 2017 % change
Wines & Spirits 565 681 + 21 %
Fashion & Leather Goods 1 630 2 192 + 34 %
Perfumes & Cosmetics 272 292 + 7 %
Watches & Jewelry 205 234 + 14 %
Selective Retailing 410 441 + 8 %
Other activities and eliminations (123) (200)


Wines & Spirits: good start to the year with solid growth in the United States, and improved momentum in China

The Wines & Spirits business group recorded organic revenue growth of 10%. On a reported basis, revenue rose 12% and profit from recurring operations increased by 21%. The business group reaffirmed its commitment to innovation with many initiatives across the brands. All the champagne Houses have performed well. Europe and the United States were particularly dynamic. Hennessy cognac continued to show strong growth in the US market, while demand is recovering in China. The second half of the year is expected to experience a slowdown in volume growth given the existing supply constraints.

Fashion & Leather Goods: good creative momentum at Louis Vuitton and further strengthening of other brands

The Fashion & Leather Goods business group recorded organic revenue growth of 14%. On a reported basis, revenue increased 17% and profit from recurring operations was up 34%. The momentum at Louis Vuitton, driven by its exceptional creativity, was demonstrated across all its product categories. The Cruise Collection presented at the Miho Museum in Kyoto, Japan, was a great illustration of this. The launch of new models resulting from the collaboration with the artist Jeff Koons and the cult New York skatewear brand, Supreme, were the highlights of the first half. Fendi continued its strong growth and enriched its leather goods lines, notably with the new Kan-Imodel. Loro Piana strengthened its presence in Asia with several openings. Céline, Loewe and Kenzo experienced good growth. Marc Jacobs strengthened its product offering and continued its restructuring. Other brands continued to grow. Rimowa, which joined the LVMH Group, is consolidated for the first time in the first half-year accounts.

Perfumes & Cosmetics: continuous innovation and strong growth in makeup

The Perfumes & Cosmetics business group posted organic revenue growth of 12%. On a reported basis, revenue grew 14% and profit from recurring operations was up 7%. Christian Dior showed strong growth momentum, sustained by the vitality of its iconic fragrances J’adore and Miss Dior, the continued success of Sauvage and the performance of its latest makeup creations. Guerlain enjoyed a successful launch of its new perfume, Mon Guerlain, represented by Angelina Jolie. Parfums Givenchy experienced rapid growth in makeup, especially its line of lipsticks. Benefit continued to roll out its Brow Collection.

Watches & Jewelry: good first half for Bvlgari and successful development of TAG Heuer in its core range

The Watches & Jewelry business group recorded organic revenue growth of 13%. On a reported basis, revenue growth was 14% and profit from recurring operations was up 14%. Bvlgari enjoyed an excellent first half and continued to gain market share. This dynamic is notable in both jewelry and watchmaking, especially in China and Europe, thanks to the success of the iconic Serpentiand B-Zero 1 lines and the new Octo Finissimo watch. TAG Heuer experienced solid revenue growth in a tough watch market. The new products created in its flagship CarreraAquaracer and Formula 1 collections were very successful and a new generation of the smart watch was launched. Hublot continued its growth.

Selective Retailing: growth at Sephora and improved momentum of DFS in Asia

The Selective Retailing business group posted organic revenue growth of 12%. On a reported basis, sales growth was 15% and profit from recurring operations was up 8%. Sephora continued to make progress and reinforced its omnichannel strategy. While increasing its share of online sales, Sephora continued to invest in extending its network and renovating existing stores, particularly in New York and Dubai. Le Bon Marché developed a new online shopping experience by launching its digital platform 24 Sèvres. DFS experienced better momentum in Asia, while the T Galleria, which opened in 2016 in Cambodia and Italy, continued to develop.

Outlook 2017

Despite the context of geopolitical and currency uncertainties, LVMH 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 quality across all our activities, combined with the dynamism and unparalleled creativity of our teams, will enable us to reinforce, once again in 2017, LVMH’s global leadership position in luxury goods.

An interim dividend of 1.60 Euro will be paid on December 7th, 2017.