Executive Summary

• LVMH Moët Hennessy Louis Vuitton increased revenues by 15.0% year over year in 1H17, to €19,714 million, which was above the consensus estimate of €19,492 million. Revenues increased by 12% year over year on an organic basis.
• The company’s gross margin contracted by 50 basis points year over year, to 65.1%, and its SG&A margin contracted by 180 basis points, to 46.6%. Its operating margin expanded by 130 basis points, to 18.5%.
• Revenues were driven by strength in Asia excluding Japan and Europe. In terms of business segments, sales growth was driven by the Fashion & Leather Goods and Watches & Jewelry divisions.