LVMH, the world’s largest luxury goods group, is on a tear. The conglomerate recently announced it will be a Premium Partner for the Paris 2024 Olympic and Paralympic Games. Among the prestige brands adding their lustre will be LVMH-owned Sephora, who will be a partner for the Olympic Torch Relay, organising activations for the public along the route and at key LVMH Group locations.
LVMH also has much to celebrate with its first half 2023 results. The multinational posted revenue of 42.2 billion euros (US$46.71 billion) for the first six months of the year – an increase of 15 per cent in reported terms and 17% in organic terms year-on-year.
All divisions delivered double digit growth, except Wines & Spirits, with Fashion & Leather Goods leading the pack with a 17 percent uplift to 21.162 billion euros (US$23.43 billion). A major highlight of the first half of the year for the division included the appointment of Pharrell Williams as Men’s Creative Director for Louis Vuitton. His first fashion show on the Pont Neuf bridge in Paris garnered a mammoth 1.1 billion views on social media.
Selective Retailing, including Sephora and DFS travel retail, benefited from the continued increase in international travel as turnover surged 26 per cent to 8.355 billion euros(US$9.25 billion). International passenger numbers are yet to return to 2019 levels but are rebounding strongly, says IATA, the trade association of the global airline industry.
LVMH is one of the biggest players in prestige beauty through the firepower of such brands as Christian Dior, Givenchy, Guerlain, Benefit Cosmetics, Fresh and Make Up For Ever. Revenue surged 11 per cent in reported terms and 13 per cent in organic terms to 4.028 billion euros (US$4.46 billion). Dior continued to be an exceptional performer across all categories and the multinational also singled out Guerlain for skincare, Benefit Cosmetics and Fenty Beauty. According to Cosmetify, the Rihanna-founded brand has annual revenues north of US$582 million and 12 million Instagram followers.
LVMH re-jigged the leadership of its Perfumes & Cosmetics division in March this year as part of a major strategy to further leverage the power of the 15 brands in the portfolio. Stephane Rinderknech was appointed CEO and comes with a strong background in beauty. A 22 year veteran of L’Oréal, his previous senior appointments include General Manager of L’Oréal’s Luxe division in China, CEO of L’Oréal China and CEO of L’Oréal USA.
Bernard Arnault, Chairman and CEO of LVMH, commented: “LVMH achieved outstanding results during a six month period of ongoing economic and geopolitical uncertainty. The strong creative momentum and excellent distribution of our Maisons continued to inspire dreams, as demonstrated by the enthusiastic reception given to Pharrell Williams’ first fashion show for Louis Vuitton as well as the reopening of the New York ‘Landmark’ Tiffany & Co.
“We continued to see progress relating to our environmental, social and societal commitments, most notably in the recent announcement of an ambitious water sobriety plan intended to reduce our overall water consumption footprint by -30% by 2030. Thanks to the desirability of our brands, we approach the second half of the year with confidence and optimism but will remain vigilant within the current environment and count on the agility and talent of our teams to further strengthen our global leadership in luxury goods in 2023.”
Read the current issue of our digital magazine below:
- For more news and updates, subscribe to our weekly newsletter
- Follow us on Instagram
- Like us on Facebook
- Connect with us on LinkedIn