LVMH H1 Earnings Report 2023


LVMH H1FY23: The Stock Falls as it Reports a Slowdown in their US Luxury Market

Luxury Behemoth LVMH Moet Hennessy Louis Vuitton in H1FY23 recorded revenue of €42.2 billion, up by 15%.

On Segmental Basis, The company's Wines and spirits segment decreased by 4% YoY. Moreover, their Fashion and leather segment grew by 17%, Perfumes and cosmetics grew by 11%, the Selective Retail segment grew by 26% on a YoY basis, and the Watches and jewelry segment grew by 11% YoY.

Geographically, Revenue from Japan for Q2 was up by 29% and H1FY23 increased by 31%. Revenues in Asia excluding Japan grew by 34% in Q2 and 23% in H1. Moreover, LVMH revenues in  Europe for Q2 grew by 19% and 22% in H1. The company reported a 1% decline in revenue for Q2 and for H1 it went up by 3% YoY. (Source: LVMH)

During the earnings call, LVMH CEO Jean-Jacques Guiony said the drop in US sales is because aspirational consumers no longer spent on entry-level products. He also mentioned he couldn’t explain the exact reason for the drop, one of the reasons could be the fading stimulus payments after COVID could have contributed. Guiony mentioned that the hardest-hit segment in the US was the wine and spirits — especially cognac. The company struggled with inventory issues during and after the pandemic, making pricing and supply hard to control. (Source: CNBC)

LVMH plans to rein in marketing spending in the second half of the year to maintain flat margins after hefty investment in high-profile events, notably Pharrell Williams' debut fashion show at Vuitton. (Source: Yahoo)

Moreover, The company plans to sponsor the 2024 Olympic Games in Paris. The company has become a premium partner of the Paris 2024 Olympic and Paralympic Games. (Source: Vogue Business)

LVMH shares were down 3.7% in early session trading on July 25th. (Source: Yahoo)

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