LVMH profit reaches €5.7bn as second-quarter sales return to growth

LVMH reported first-half net profit of €5.7 billion on Monday as second-quarter sales returned to growth and exceeded analyst expectations despite continued pressure on the luxury sector.

The group, whose brands include Louis Vuitton, Dior, Celine and Hennessy, said first-half sales fell three percent to €38.6 billion.

Both sales and profit exceeded the consensus of analyst forecasts compiled by FactSet.

After falling six percent in the first quarter, reported sales edged 0.1 percent higher in the second quarter to €19.5 billion.

LVMH said exchange-rate movements reduced reported sales by five percent.

Excluding currency effects and changes in business operations, sales rose two percent in the first half and three percent in the second quarter.

Chief executive Bernard Arnault said the faster second-quarter growth was supported by Jonathan Anderson’s first designs for Christian Dior, new Louis Vuitton stores in Beijing and Seoul, and products from Tiffany and Bulgari.

LVMH’s main fashion and leather goods division reported a five-percent decline in first-half sales on a reported basis and a one-percent fall on a comparable basis.

Comparable sales in the division rose one percent during the second quarter, marking its first quarterly increase in two years.

Comparable sales increased in most regions, rising six percent in Asia excluding Japan and four percent in the United States. European sales were unchanged.

The luxury sector has struggled following its post-pandemic boom as demand in China weakened and global trade was disrupted by tariff disputes and the war in the Middle East.

LVMH said its results were achieved despite a disrupted geopolitical and economic environment intensified by the conflict in the Middle East.