1H2018 Results

Yesterday LVMH released their first half 2018 financial results. Let’s take a look at how our alternative data index Hunger Score performed on this one.

The company as usual doesn’t break down results by brand, which I think in Fashion & Luxury is more common than it should and I think it would add great value to analysts and shareholders. The faith of these stocks is so linked to individual brands that the market should be able to weight in potential issues derived on a single label. But that is academia.

We’ll use as a proxy Fashion & Leather Goods, which includes Louis Vuitton, Berluti, Céline, Dior, Givenchy, Kenzo, Nicholas Kirkwood, Fendi, Loro Piana, Loewe, Moyant, Rimowa, Emilio Pucci, Thomas Pink, Marc Jacobs. Not exactly a small pack.

Organic growth for the brands was +15% versus half year 2017 (+17% due to the consolidation of Christian Dior and -7% due to currency fluctuations).

Here a few snapshots of what was disclosed on the individual brands:

Louis Vuitton opened pop-up stores in a number of different locations and continued enhancing the quality of its retail network”

Fendi’s performance was buoyed by the brand’s strong desirability, especially for ready-to-wear and footwear, and the momentum achieved by its menswear collections”

Loro Piana […] expanded its distribution network and strengthened its presence in Asia”

Givenchy […] main highlight of the half-year period was the design of the Duchess of Sussex’s wedding gown, with media coverage of the event generating extremely high visibility for Givenchy”

Loewe achieved good growth, with particularly strong results in Japan and the rest of Asia”

Kenzo continued its ascent […] strengthening its distribution capacities and expanding its digital presence remained major strategic priorities”

Marc Jacobs continued to reorganize and to develop its product lines”

Berluti [‘s …] store network continued to expand”

Breaking down results using alternative data:

Using the Hunger Score index, we are able to take a closer look at what’s hapening inside LVMH. Here a glance:

Alternative data to break down LVMH results
Alternative data to break down LVMH results