LVMH Moët Hennessy Louis Vuitton SE Reports 3% Second-Quarter Growth

LVMH Moët Hennessy Louis Vuitton SE reported a 3% organic increase in second-quarter sales, totaling €19.5 billion, as strong demand from affluent shoppers in the United States and Asia offset declines in Europe and the Gulf. While the group's overall first-half revenue fell 3% on a reported basis to €38.6 billion and profits from recurring operations dropped 4% to €8.7 billion, the second quarter marked a recovery phase. The fashion and leather goods division posted a modest 1% organic increase, its first quarterly rise in two years after seven consecutive quarters of decline.

Bernard Arnault, Chairman and CEO of LVMH Moët Hennessy Louis Vuitton SE, attributed the momentum to the quality and creative renewal of the group's maisons. He specifically highlighted the success of Jonathan Anderson's first designs for Christian Dior and the performance of new Louis Vuitton stores in Beijing and Seoul. The Watches and Jewellery sector outperformed other categories with an 11% organic increase, fueled by brands including Tiffany & Co. and Bvlgari.

Regional performance varied, with the U.S. market accelerating to 6% growth and Japan seeing a 14% improvement. However, the company noted that conflict in the Middle East and the Iran war reduced sales growth by approximately one percentage point and negatively impacted European tourism. Despite these results, LVMH Moët Hennessy Louis Vuitton SE shares have declined 28% since the start of the year.