Lvmh, revenues down to 42 billion. Contrasts between champagne and cosmetics

It was the most eagerly awaited half-yearly report in many months, that of Lvmh , the world's largest luxury group, which is still the main sponsor of the Olympics that open in a few hours in Paris. Revenues came in at EUR 41.7 billion (up from EUR 42.2 billion in the same period last year) and organic growth confirms the normalisation phase but is still positive (+2% over H1 2023). Profits came in at 10.7 billion, equivalent to an operating margin of 25.6% of sales, a level 'well above pre-Cvid levels' (pictured above, the most recent Louis Vuitton fashion show, which presented the men's collection in the Unesco gardens).

The Fashion & Leather Goods segment, with the 'superstar' Louis Vuitton, closed the six-month period at EUR 20.8 billion, corresponding to an organic growth of 1%. Spirits were down (-12%), while the cosmetics segment did well, growing by 35% to EUR 4.1 billion.

In the morning the Lvmh share had gained 0.5%, but in the last period it has performed weakly along with the luxury sector: since mid-March it has left 20% of its value on the parterre, deflating along with the luxury business which, as experts note, is moving towards a 'normalisation' of sales, after the post-pandemic euphoria.

Analysts, however, awaited the French luxury giant's numbers with great curiosity. Last week, the accounts of Burberry and Hugo Boss came in below expectations, mainly due to sluggish demand for high-end goods in Asia. Richemont itself, while containing its April-June sales decline to 1%, reported a sharp drop in business in the Asian region.

Analysts at Equita estimated first-half turnover for Lvmh at EUR 42.3 billion, in line with the value for the same period in 2023 and with growth of around 3% at an organic level (thus higher than that communicated). In any case, the rating on the shares is positive: Buy with a price target of €855.While waiting for the accounts, Bernstein had also reiterated its Overweight recommendation on Lvmh, with a price target of €950. The luxury giant's stocks remain among the business house's favourites, along with Hermès. Bernstein's analysts, on the other hand, pointed to the fact that even in the first part of the year, although the luxury sector raised prices less than in recent years, when the change averaged 5-7%, the group's brands Loewe and Fendi launched the biggest price increases in the sector. Turnover could therefore benefit from the price policy decided by the group.