(News Bulletin 247) – The luxury group has delivered its accounts for the first half of 2024, with a profit down on a year-on-year basis. Growth in the second quarter slowed.

LVMH has opened the results season for the major luxury groups in Paris. The world leader in the sector has thus delivered its accounts for the period from January to June.

Its net profit fell by 14% year-on-year in the first half to 7.27 billion euros.

Over the first six months of the year, LVMH generated revenues of 41.67 billion euros, down 1% in published data and up 2% in comparable data.

In the second quarter alone, LVMH’s revenues stood at 20.99 billion euros, up 1% on a comparable basis, and 1% for its fashion and leather goods division alone, the group’s largest.

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Sales drop in Asia

This growth marks a slowdown compared to the first quarter (+3%) and is lower than expectations. Deutsche Bank had expected sales to increase by 3.9% in comparable data, UBS anticipated a 2% increase.

In detail, LVMH was weighed down by the Asia Pacific region, which includes China, where its sales fell by 14% in the second quarter after a drop of 6% in the first.

The United States posted a 2% like-for-like increase in the second quarter, the same figure as the previous three months. Europe accelerated slightly (+4% compared to +2% in the first quarter). Japan posted a 57% increase over one year. Japan and to a lesser extent Europe benefited from the growth in spending by Chinese tourists abroad.

LVMH’s current operating profit fell by 8% to 10.65 billion euros in the first half. The operating margin stood at 25.6% compared to 27.4% a year earlier.

“While remaining vigilant in the current context, the group is approaching the second half of the year with confidence,” said Bernard Arnault, Chairman and CEO of LVMH, in a press release.

While the reaction of the Paris market will be observed on Wednesday, LVMH’s ADR on Wall Street, a depositary certificate allowing American investors to speculate on foreign groups, fell by 4.2% around 5:50 p.m.