LVMH first-half profit soars as shoppers splash out on luxury fashion
Sales at world’s biggest luxury goods group rose by 84% year on year as global travel rebounds and pandemic lockdowns ease
Silvia Aloisi and Mimosa SpencerPicture: BLOOMBERG/HOLLIE ADAMSParis — Surging sales of fashion lines and handbags by Dior, Fendi and Louis Vuitton powered LVMH’s revenues as coronavirus restrictions eased around the world and the luxury goods group edged out some rivals to raise its market share.
The luxury goods industry is recovering from the health crisis, which shut down global travel and temporarily closed stores. The end of Covid-19 lockdowns across much of Europe is reviving demand in the region after a strong Chinese rebound.LVMH, the world’s biggest luxury goods group, has benefited more than most, using its heft to spend on marketing and social media campaigns when some of its smaller rivals are still struggling to get back on their feet.
The conglomerate said on Monday that its biggest revenue driver, Vuitton, as well as fashion brands Dior, Fendi, Loewe and Celine had posted record sales and profitability in the first half of 2021 and increased their market share.Brands have ramped the number of “pop-up” temporary shops in resorts, which travellers are returning to, and are refurbishing some other stores, the company said. headtopics.com
CFO Jean Jacques Guiony told reporters the group had “room for manoeuvre” on margins to be able to invest more in the second half of the year without impacting profitability.“It’s certainly not the mood of the various brands, particularly in fashion and leather ... to stay quiet, particularly from a marketing viewpoint,” Guiony said.
Overall sales at LVMH, which also owns champagne and cosmetics labels, rose by 84% year-on-year in the second quarter on a like-for-like basis, which strips out currency swings, and stood at €14.7bn.That beat an analyst consensus forecast for 69% growth cited by UBS but in line with HSBC estimates. It was also 14% above pre-pandemic, 2019 levels.
Operating profit in the first six months of this year more than quadrupled compared with a year ago, beating expectations among analysts polled by Refinitiv.“This update should reassure, as the sector goes through an inflection,” Bernstein analyst Luca Solca said in a note.
Gucci owner Kering, LVMH’s major Paris-based rival, and handbag maker Hermes, which have also bounced back from the Covid-19 crisis, are due to report results this week.Shares in LVMH have surged by more than 70% since June 2020, making the group the biggest European company by market value and allowing boss Bernard Arnault to briefly overtake Amazon founder Jeff Bezos as the richest man in the world. headtopics.com
Fresh from its $15.8bn purchase of US jeweller Tiffany, completed in January, Guiony said LVMH was still interested in smaller deals to access new markets, technologies or products, though it had no plans for more “big acquisitions” for now.Last week, LVMH said it would buy a 60% stake in Off-White, a streetwear label founded by designer Virgil Abloh.
It has also taken a minority stake in a new label being launched by Celine’s former star designer Phoebe Philo, and raised its holding in Italian shoemaker Tod’s to 10%.Away from fashion, it teamed up with Italy’s Campari to invest in wines and spirits e-commerce companies and create a European e-commerce player in the sector.
LVMH’s revenues had dropped 16% in 2020, when the pandemic triggered global lockdowns and international travel ground to a halt.Its retailing division, which includes beauty chain Sephora and also duty free group DFS, has suffered more than its other businesses, though it clawed back some ground in the second quarter.Read more: Business Day »
Mother reunited with baby after kidnapping
A 7-month-old baby has since been safely returned to his mother after a hijacking in Cape Town on Monday.
I invested R5000 with shantelll_142 by using my LUNO app and I make over R40,000 with just few steps, shantelll_142 is an account manager who can help you trade better I recommend you to her now and start earning massively today 💹 I still can't believe that real account manager exist I am so happy trading with shantelll_142 i never took her serious because I taught she was a scam like others ,until my first withdrawal of R60,000 within just one week of trading! I am so grateful 🤗🤗
I want to use this medium to thank Rebeccamarcus70 for helping me to benefit from this platform, in just a week I got my profits without any additional fees. All thanks to him and his platform. They're indeed the best Rebeccamarcus70
WATCH | Alcohol sales, gatherings and vaccines: SA back to level 3President Cyril Ramaphosa moved the country to alert level 3 on July 25 2021. The move includes lifting the ban on alcohol and allowing small gatherings. We begging all 2000s to register and get vaccinated, we begging please!! Ma2000sRegister What is the relationship between schools and alcohol. I always noticing that when schools closes, alcohol also banned. Schools open the banning of alcohol lifted or is because some of teachers can't teach without drinking? Maybe teachers drink too much during school holidays
No long queues or spikes in online sales as booze ban is liftedWith alcohol sales unbanned on Sunday night, one might have expected a surge in people heading to liquor outlets to buy their booze. But it appeared that wasn't the case on Monday. Where is this money coming from It’s a Monday mara. We’re not daily drinkers Words alone won’t express how thankful I’m recommending you all to you shantelll_142 .....,investing with you has been a good opportunity for me and my family I just received my profit of R30,500 within five days of investment shantelll_142
No long queues or spikes in online sales as booze ban is liftedWith alcohol sales unbanned on Sunday night, one might have expected a surge in people heading to liquor outlets to buy their booze. But it appeared that wasn't the case on Monday. Words alone won’t express how thankful I’m recommending you all to you shantelll_142 .....,investing with you has been a good opportunity for me and my family I just received my profit of R30,500 within five days of investment shantelll_142 It was joyfully amazing how I was able to get my pay out from GialuigiV after 5days of trading . I just decided to give him a try because I can’t really differentiates e real managers from the fakes ones he proved me wrong GialuigiV Words alone won’t express how thankful I’m recommending you all to you shantelll_142 .....,investing with you has been a good opportunity for me and my family I just received my profit of R30,500 within five days of investment shantelll_142
Liquor industry welcomes return of legal sales and R7.5bn in tax postponementLittle reaction on the JSE after lifting of the fourth alcohol sales ban and extension of relief for businesses
We have to salvage this, says Bok coach NienaberSpringbok tactician says what happened in the second half of the first Test is ‘fixable’
Firm makes huge profit by paying Eskom’s R89.6 million tab | CitypressOne of the multinational companies that benefited from the extension and ballooning of their contracts at Eskom allegedly made a cool R1.9 million profit for picking up the tab of more than R8 million that the power utility had to pay a service provider I invested R5000 with shantelll_142 by using my LUNO app and I make over R40,000 with just few steps, shantelll_142 is an account manager who can help you trade better I recommend you to her now and start earning massively today 💹