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

LVMH reported first-half net profit of €5.7 billion on Monday and said second-quarter sales returned to growth, beating analyst expectations despite 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 expectations compiled by FactSet.

Sales had fallen six percent in the first quarter, but edged 0.1 percent higher in the second quarter to €19.5 billion. LVMH said reported sales were held back by a five-percent negative impact from exchange-rate changes.

Stripping out exchange-rate 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 came from Jonathan Anderson’s first designs for Christian Dior, new Louis Vuitton stores in Beijing and Seoul, and lines from Tiffany and Bulgari.

The main fashion and leather goods business reported a five-percent sales fall in the first half on a reported basis and a one-percent fall on a comparable basis. In the second quarter, however, fashion and leather goods sales rose one percent on a comparable basis, the division’s first quarterly gain in two years.

Comparable sales rose in most regions, including six percent in Asia excluding Japan and four percent in the United States. Sales in Europe were flat.

The luxury sector has struggled after a post-pandemic boom as the Chinese market slowed and global trade was disrupted by tariff disputes and the Middle East war. LVMH said its results came despite a disrupted geopolitical and economic environment amplified by the conflict in the Middle East.