Good First Half for LVMH

  Good First Half for LVMH

Business Wire

PARIS -- July 25, 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.

                                     First half     First half
Euro millions                                                % 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                                        
                          First half     First half     % change
Euro millions            2012         2013         Reported   Organic*
Wines & Spirits          1 759        1 808        + 3%       + 5%
Fashion & Leather        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)        -          -
Total LVMH               12 966       13 695       + 6%       + 8%
* with comparable structure and constant exchange rates.

Profit from recurring operations by business group:
                                      First half     First half
Euro millions                                                 % 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

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

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


LVMH – Revenue by business group and by quarter

First Half 2013

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

First Half 2012

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


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.”


Analysts and investors:
Chris Hollis, + 33 1.4413.2122
DGM Conseil
Michel Calzaroni/Olivier Labesse/
Sonia Fellmann/Hugues Schmitt
+ 33 1.4070.1189
Capital MSL
Claire Maloney
+44 207.307.5341
Carlo Bruno&Associati
Michele Calcaterra/Mateo Steinbach
+39 02.8905.5101
Kekst & Company
James Fingeroth/Molly Morse/Anntal Silver
+1 212.521.4800
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