Louis Vuitton and Dior help LVMH go beyond the semester’s 25-billion euro line (for the first time). An amazing result strengthened by operating income beyond 5 billion. To be noted: 5 years ago, during the first semester of the year, the French group had only sold goods for 14 billion. But LVMH isn’t the only luxury brand performing brilliantly. Even though the turnover is “only” of 570,2 million euro, Moncler is also not giving sign of stopping. Remo Ruffini’s brand beats the forecast (562 million) and showcases a trend of strong acceleration for the second semester of 2019.
The French giant had revenues for 25,1 billion euro in the first quarter of 2019: +15%. The growth at constant rates is of 12% in comparison to the previous year of 2018. EBIT grew by 14% to 5,3 billion euro, just below the forecasted result. Operating margin: 21,1%, in line with one year ago. Profits at 3,268 billion euro, up 9%.
Fashion and leather goods
In an official note, LVMH emphasizes “Louis Vuitton’s notable momentum, during which profitability remains at an exceptional level and Christian Dior Couture’s performance, which is impressive”. The Fashion & Leather Goods division grew by 18%. In value: 10,425 billion euro, more than 41% of the total. Beside from LV and Dior, the group also highlights the good prerformances of Fendi, CELINE, Loro Piana (thanks to the “new personalized footwear service”), Loewe and Rimowa.
Moncler closes its first 2019 semester with revenue at 570,2 million euro. Financial forecasts had predicted 562 million. The increment is of 13% at constant rates and 16% at current rates. The second quarter’s acceleration is significant: +18% at constant rates and +19% at current rates. Ebitda: 143,6 million euro, +16%. EBIT: 94,6 million. Profits: 71,3 million, up 16% over the same period the previous year. Good performance by Italy (+8%), better ones from United Kingdom, Germany and France. Yet, Asia is the one growing the most: +18%.
The secret is speed
The note published by the group reads: “Today’s consumers of luxury goods are evolving at an increased speed in comparison to the past. Moncler decided to open a new chapter of its history also to face these changes. Moncler Genius One House Different Voices will accompany the group on its future path”. Another strategic pillar is the focus on the consumer: “To have a direct relationship with one’s own clients, whether they are retail, wholesale or digital. Making sure they are involved and that the brand can offer relevant experiences with all its touchpoints, all while understanding their expectations”.