2022-07-29 14:55:20

LVMH half-year results soar despite weak growth in China

2022-07-29 14:55:20

LVMH’s beauty division was bolstered by a strong performance from Parfums Christian Dior in Europe and the US.


LVMH has reported double-digit growth across all of its business categories in the first half of 2022, despite struggling sales in China.

Key consumer destinations such Hong Kong and Macau were impacted by Covid-19 lockdowns imposed in mid-March, stifling growth during the second quarter.

The beauty conglomerate, however, recorded bumper profits of €10.2bn from its recurring operations during the period.

Revenues also leapt by 28% to €36.7bn compared with 2021.

Perfumes and cosmetics performed particularly well in the half-year results, as reported revenue jumped by 20% to €3.6bn.

Parfums Christian Dior drove sales in Europe and the US, with Sauvage, J’adore and Miss Dior highlighted as key performers.

Make-up bolstered the beauty division’s strong results, with Make Up Forever’s new HD Skin Undetectable Foundation singled out due to warm reception by consumers.

Benefit Cosmetics, meanwhile, saw a rebound in services thanks to increased footfall in bricks-and-mortar stores.

The group’s Guerlain business continued to grow, driven notably by the performance of its Abeille Royale skin care range and its Aqua Allegoria collection.

Profit from recurring operations for perfumes and cosmetics was down 1%, however, due to LVMH’s decision for a highly selective policy in distribution and promotions.

“LVMH has enjoyed an excellent start to the year, to which all of our business groups contributed,” said Bernard Arnault, Chairman and CEO of LVMH.

“It is the creativity and quality of our products, the excellence of their distribution and the rich cultural heritage of our maisons, fueled by their history and know-how, that enable the group to excel around the world.”

The beauty owner also praised its selective retailing offering, as revenue increased by 22% in the first half of 2022.

This was led by Sephora which saw “excellent performance” as a result of a rebound in-store activity.

North America, France and the Middle East were the standout regions for the French multinational retailer.

LVMH said it will continue investing in Sephora’s omnichannel strategy, to improve the “purchasing experience” of its customers both online and in-store.

The company also acknowledged the potential negative impact that the current political climate and continued Covid-19 restrictions could have on the business.

“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,” added Arnault.