LVMH : Good First Half for LVMH

                       LVMH : Good First Half for LVMH

                                      


                                                           Paris, 25 July 2013

LVMH Moët Hennessy Louis Vuitton,  the world's leading luxury products  group, 
recorded revenue of €13.7 billion in the  first half 2013, an increase of  6%. 
Organic revenue  growth was  8% compared  to the  same period  in 2012,  which 
itself saw strong growth. The Group  continued to experience good momentum  in 
the US and Asia, and continues to grow in Europe in a more difficult  economic 
environment. With  organic  growth  of  9%, the  second  quarter  showed  some 
acceleration compared to the first quarter.

Profit from recurring operations  for the first  half of 2013  rose to €2  712 
million, an  increase  of  2%  compared  to the  same  period  in  2012.  This 
performance compares to the  first half of 2012,  which had shown very  strong 
growth. Current operating margin reached 20%. Group share of net profit  rose 
to €1 577 million.

Bernard Arnault, Chairman and CEO of LVMH, commented:
"The performance  of LVMH  in the  first half,  once again,  demonstrates  the 
exceptional appeal of our brands, the attraction of our high quality artisanal
products and  the  relevance of  our  strategy. Innovation,  extreme  quality, 
strong distribution and savoir-faire  in all of  our businesses reinforce  our 
Maisons. Loro  Piana,  with  whom we  share  the  same values  of  family  and 
craftsmanship,  will  fit  harmoniously  within  this  dynamic.  It  is   with 
confidence that  we approach  the second  half of  the year  and rely  on  the 
creativity and quality of  our products, as well  as the effectiveness of  our 
teams, to pursue further market share gains in our traditional markets as well
as in high potential emerging territories."

Highlights of the first half of 2013 include:

  *Good resilience  in Europe  and  sustained momentum  in Asia,  the  United 
    States and Japan,

  *Market share gains of all our brands,

  *Good performance in Wine & Spirits,

  *The very  qualitative development  of Louis  Vuitton, whose  profitability 
    remains at an exceptional level,

  *Continued investment in the fashion brands,

  *Further innovation and success of iconic lines at Christian Dior,

  *Increased selectivity in Watches and Jewelry distribution,

  *Excellent performance of DFS and Sephora worldwide,

  *Cash from operations before changes in working capital of € 3.3 billion,

  *Net debt to equity ratio of 19% as of the end of June 2013.

Euro millions                    First half First half % change
                                    2012       2013
Revenue                              12 966     13 695     + 6%

Profit from recurring operations      2 659      2 712     + 2%

Group share of net profit             1 681      1 577     - 6%

Cash from operations*                 3 198      3 280     + 3%

* before changes in working capital.

Revenue by business group:

                              First half First half          % change
Euro millions                    2012       2013
                                                    Reported     Organic*
Wines & Spirits                 1 759      1 808             + 3%     + 5%
Fashion & Leather Goods         4 656      4 711             + 1%     + 5%
Perfumes & Cosmetics            1 727      1 804             + 4%     + 6%
Watches & Jewelry               1 343      1 310             - 3%     + 1%
Selective Retailing             3 590      4 215            + 17%    + 19%
Other activities and            (109)      (153)          -            -
eliminations
Total LVMH                      12 966     13 695            + 6%     + 8%

* with comparable structure and constant exchange rates.

Profit from recurring operations by business group:

Euro millions                     First half First half % change
                                     2012       2013
Wines & Spirits                          496        542     + 9%
Fashion & Leather Goods                1 516      1 497     - 1%
Perfumes & Cosmetics                     197        200     + 2%
Watches & Jewelry                        159        156     - 2%
Selective Retailing                      373        407     + 9%
Other activities and eliminations       (82)       (90)    -
Total LVMH                             2 659      2 712     + 2%

Wines & Spirits: pursuing a value strategy

The Wines &  Spirits business  group recorded  organic revenue  growth of  5%. 
Profit from recurring operations  increased by 9%.  The champagne business  in 
Europe has  shown good  resilience in  a difficult  economic environment.  The 
sustained demand enjoyed by LVMH brands in Asian markets has kept the  volumes 
identical to those levels achieved in the first half of 2012. Hennessy  cognac 
recorded volume  growth  of  3%,  driven primarily  by  young  qualities.  The 
business group remained focused on its value strategy: firm pricing policy and
strong innovation accompanied by sustained investments.

Fashion & Leather Goods: strategic development of Louis Vuitton and  sustained 
investment in other brands

The Fashion and Leather Goods  business group recorded organic revenue  growth 
of 5% in the  first half of  2013. Profit from recurring  operations was at  a 
comparable level  to  that achieved  in  first  half of  2012.  These  results 
demonstrate the  success of  both the  very qualitative  development of  Louis 
Vuitton and the strategy to strengthen the production of other brands as  well 
as the quality of their distribution. Louis Vuitton continues to develop  well 
thanks to its  boundless creativity  and its  excellent distribution  network. 
Leather lines progressed strongly.  The opening of two  new Maisons in  Venice 
and Munich took place in the first six months of the year. Fendi has developed
its outstanding  savoir-faire,  notably  in leather.  Céline  recorded  steady 
growth and  accelerated the  pace of  expansion and  renovation of  its  store 
network. Other brands  will continue  consolidating their positions  so as  to 
successfully tackle the next phases of their development.

Perfumes & Cosmetics: continuous innovation and increasing market share

The Perfumes & Cosmetics business group recorded organic revenue growth of 6%.
Profit from recurring operations was up 2% compared to the first half of 2012.
Innovation and market share  gains were both important  features of the  first 
half of 2013. Parfums  Christian Dior maintained  good momentum, supported  by 
its perfumes, including Miss Dior and J'Adore with Voile de Parfum. The makeup
segment, with  their  privileged  connections  to  couture,  made  significant 
progress. Guerlain benefited  from the  continuing success of  La Petite  Robe 
Noire. Parfums Givenchy registered good  progress in its makeup line.  Benefit 
and Fresh experienced rapid international development.

Watches & Jewelry: enhanced distribution and savoir-faire

In the  first half  of 2013,  the Watches  & Jewelry  business group  recorded 
organic revenue growth of  1%. Profit from  recurring operations decreased  by 
2%. The  strategy  of moving  further  upmarket  continued with  the  goal  of 
enhancing the attractiveness of our  brands to our customers. The  performance 
in own stores was excellent  thanks to the quality  and creativity of our  new 
products as well  as the strength  of iconic lines,  particularly in  jewelry. 
This was offset by restrained purchasing by watch retailers and the  voluntary 
closure of certain multi-brand points of sale, which explain this lower  first 
half growth. We  continue to invest  in strengthening the  quality of our  own 
distribution and the control over our watchmaking and jewelry production.

Selective Retailing: continued profitable growth momentum

The Selective Retailing business group recorded organic revenue growth of  19% 
and a 9% increase  in profit from  recurring operations in  the first half  of 
2013. DFS  benefited from  strong comparable  store growth  supported by  good 
momentum of Asian clientele. The new concessions won in late 2012 in the  Hong 
Kong airport made a significant contribution to the increase in revenue  while 
major renovation work weighed on  profitability. Sephora continues to  deliver 
outstanding performance, driven by  growth in revenue  at existing stores  and 
the expansion  of its  global network.  In North  America, where  the  company 
continues to  strengthen  its position  and  innovate in  the  digital  world, 
revenue growth also remained strong. Sephora  also opened a flagship store  in 
China in Shanghai, and began its expansion in India.

2013 Outlook

Despite an uncertain European economic environment, LVMH will continue to gain
market share thanks to the numerous product launches planned before the end of
the year and its geographic  expansion in promising markets, while  continuing 
to manage costs.

Our strategy of focusing on quality  across all our activities, combined  with 
the dynamism  and unparalleled  creativity of  our teams,  will enable  us  to 
reinforce, once again  in 2013,  LVMH's global leadership  position in  luxury 
goods.

An interim dividend of 1.20 Euro will be paid on December 3, 2013.





Regulated information related  to this  press release, the  half year  results 
presentation and  the  half year  financial  statement are  available  on  our 
internet site www.lvmh.com



Audit procedures have  been carried out  and the audit  report will be  issued 
following the Board meeting.

APPENDIX

LVMH - Revenue by business group and by quarter

First Half 2013

                   Fashion  Perfumes Watches                       Other
(Euro      Wines &       &         &       &    Selective   Activities & Total
millions)  Spirits Leather Cosmetics Jewelry Distribution   Eliminations
                     Goods
First          979   2 383       932     624        2 122           (93) 6 947
quarter
Second         829   2 328       872     686        2 093           (60) 6 748
quarter
Total        1 808   4 711     1 804   1 310        4 215          (153)    13
revenue                                                                    695

First Half 2012

                   Fashion  Perfumes Watches                       Other
(Euro      Wines &       &         &       &    Selective   Activities & Total
millions)  Spirits Leather Cosmetics Jewelry Distribution   Eliminations
                     Goods
First          926   2 374       899     630        1 823           (70) 6 582
quarter
Second         833   2 282       828     713        1 767           (39) 6 384
quarter
Total        1 759   4 656     1 727   1 343        3 590          (109)    12
revenue                                                                    966

LVMH
LVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits by a
portfolio of brands that includes Moët & Chandon, Dom Pérignon, Veuve Clicquot
Ponsardin, Krug, Ruinart, Mercier, Château d'Yquem, Hennessy, Glenmorangie,
Ardbeg, Wen Jun, Belvedere, 10 Cane, Chandon, Cloudy Bay, Terrazas de los
Andes, Cheval des Andes, Cape Mentelle, Newton et Numanthia. Its Fashion and
Leather Goods division includes Louis Vuitton, Céline, Loewe, Kenzo, Givenchy,
Thomas Pink, Fendi, Emilio Pucci, Donna Karan, Marc Jacobs and Berluti. LVMH
is present in the Perfumes and Cosmetics sector with Parfums Christian Dior,
Guerlain, Parfums Givenchy, Parfums Kenzo, Perfumes Loewe as well as other
promising cosmetic companies (BeneFit Cosmetics, Make Up For Ever, Acqua di
Parma and Fresh). LVMH is also active in selective retailing as well as in
other activities through DFS, Sephora, Le Bon Marché, la Samaritaine and Royal
Van Lent. LVMH's Watches and Jewelry division comprises Bulgari, TAG Heuer,
Chaumet, Dior Watches, Zenith, Fred, Hublot and De Beers Diamond Jewellers
Ltd, a joint venture created with the world's leading diamond group.



"Certain information  included  in this  release  is forward  looking  and  is 
subject to important risks and uncertainties and factors beyond our control or
ability to predict, that could cause actual results to differ materially  from 
those anticipated, projected or implied. It only reflects our views as of  the 
date of this presentation. No undue reliance should therefore be based on  any 
such information, it  being also  agreed that  we undertake  no commitment  to 
amend or update it after the date hereof."

Contacts:
Analysts and investors: Chris Hollis                       + 33 1.4413.2122
                        LVMH
Media:
France:                Michel Calzaroni/Olivier Labesse/  + 33 1.4070.1189
                        Sonia Fellmann/Hugues Schmitt
                        DGM Conseil
UK:                     Claire Maloney                     +44207.307.5341
                        Capital MSL
Italy:                  Michele Calcaterra/Mateo Steinbach +39 02.8905.5101
                        Carlo Bruno&Associati
US:                     James Fingeroth/Molly Morse/       +1 212.521.4800
                        Anntal Silver
                        Kekst & Company

LVMH2013HalfYearResults

------------------------------------------------------------------------------

This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
the
information contained therein.

Source: LVMH via Thomson Reuters ONE
HUG#1718850
 
Press spacebar to pause and continue. Press esc to stop.