The recovery of the luxury goods sector is confirmed by the 19 percent organic sales increase reported by the Christian Dior Group, which includes LVMH’s results, for the 2nd quarter ended June 30. For the full first half, group sales were up by 14.3 percent on a comparable basis, reaching a total of €5,943 million, and the operating income rose by about 12 percent based on preliminary estimates.
Christian Dior Couture, which only includes the activities under the Christian Dior brand, saw its own sales rise by 16 percent at current rates to €274 million in the 6-month period, but in local currencies its revenues were up by 20 percent, accelerating to 28 percent in the 2nd quarter. The division’s operating profit rose by more than 30 percent in the 1st half.
Similarly, LVMH, which doesn’t include Dior, raised its sales by 8 percent in the first half to €5,676 million, but the growth rate doubled to 16 percent in the 2nd quarter. On an organic basis, sales grew by 14 percent in the six months and by 19 percent in the quarter. Louis Vuitton continued to be growth driver in the fashion and leathergoods division, whose sales rose by 7 percent to €2,022 million in the 1st half, or by 11 percent in local currencies. Vuitton’s sales were particularly strong in the USA and in Asian markets, but the return of tourists in Europe was accompanied by an increase in demand also in the this part of the world.