LVMH Moet Hennessy Louis Vuitton SE

Solid H1 results with margin resilience (good + surprising): LVMH delivered EUR 38.6bn revenue (+2% organic), Q2 +3% organic; operating margin 22.5% (very high). Profit from recurring operations EUR 8.7bn (noted significant negative currency impact). Net income ~in line with last year and free cash flow > EUR 4bn (H1 EUR 4.1bn). Despite revenue only modestly growing, the company held margin well through operational discipline (cost control, marketing -2%, G&A flat).

FX + geopolitics remain the key headwinds (bad): Currency impact ~ -5% on revenue and nearly ~EUR 700m negative impact on operating income; Middle East conflict hit H1 growth by ~-1pp (both Q1 and Q2). Also DFS disposals created -1pp perimeter impact at group level in H1/Q2.

Growth acceleration in the largest segments—especially Watches & Jewelry (good): - Fashion & Leather Goods: EUR 18.1bn revenue, -1% organic (Q2 +1% organic), with sequential acceleration in most brands. - Watches & Jewelry: EUR 5.2bn, +9% organic in H1 (double-digit growth in Q2); operating margin up (to 15.9%, +90 bps). Jewelry was the main driver; Watches still softer. - Selective Distribution: EUR 8.4bn, +5% organic (reported -2% due to DFS perimeter); Sephora strong across regions/categories. - Wines & Spirits: EUR 2.6bn revenue, +5% organic (flat reported); improved momentum mainly via Champagne/Wines volume, mix and prestige cuvées; Cognac improving in China.