Executive Summary

• LVMH reported revenues of €17,188 million in 1H16, up3% from €16,707 million in 1H15, and above the consensus estimate of €16,970 million. Organic growth for both 1H16 and 2Q16 was 4%, marking a sequential quarterly acceleration from 3% organic growth in 1Q16.
• Profit from recurring operations was flat,at €2,959 million, above the consensus estimate of €2,906 million. A 17% increase in recurring operating profit in the Wines and Spirits segment and 9% growth in the Perfume and Cosmetics segment offset profit weakness in other divisions. Selective Retailing posted a 5% decline in recurring profit.
• 1H16 reported diluted EPS was €3.39, slightly below the consensus estimate of €3.40.
• The company noted that its US market is strong, and that although most of Europe seemed stable, business in France was affected by a fall in tourism. Trends in Asia improved steadily during the period.