By Sam Boughedda
LVMH (OTC:LVMUY) reported earnings for the first half of the year on Tuesday, with revenue climbing 21% year over year.
The luxury goods company described its first half as "excellent," posting revenue of €36.7 billion, with all business groups achieving double-digit organic revenue growth. Operating margin reached 27.9% of revenue, up 1.3 points year-over-year. Meanwhile, LVMH's second quarter revenue increased 19%.
"Europe and the United States have been up sharply since the start of the year, while Asia saw a lower level of growth due to the new health restrictions in China," the company stated.
Despite soaring inflation, demand for luxury or high-end brands has remained resilient so far this year. LVMH said the performance of its Fashion & Leather Goods business group was "remarkable," particularly Louis Vuitton, Christian Dior, Fendi, Celine, Loro Piana, and Loewe, which gained market share and achieved new record highs for profitability.
LVMH's profit from recurring operations rose 34% to €10.235 million for the first half of 2022.
"LVMH has enjoyed an excellent start to the year, to which all of our business groups contributed. 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," said Bernard Arnault, Chairman, and CEO of LVMH.
Looking ahead, LVMH said that given the current geopolitical environment, it would maintain a strategy focused on continuously strengthening the desirability of its brands.
"Our strategy of focusing on the highest quality across all of our activities, combined with the dynamism and unparalleled creativity of our teams, will enable us to reinforce LVMH's global leadership position in luxury goods once again in 2022."
"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.
LVMH will pay an interim dividend of €5 on December 5, 2022.