Christian Dior: Good results for Christian Dior in the first half of the year despite the prevailing environment

Good results for Christian Dior in the first half of the year
despite the prevailing environment

Paris, July 23, 2024

The Christian Dior Group recorded revenue of €41.7 billion in the first half of 2024. Growth continued over the period (2% organic growth) despite a geopolitical and economic environment that remained uncertain. Europe and the United States achieved growth on a constant consolidation scope and currency basis; Japan recorded double-digit revenue growth; the rest of Asia reflected the strong growth in spending by Chinese customers in Europe and Japan. In the second quarter, organic revenue growth was 1%.

Profit from recurring operations for the first half of 2024 came to €10.6 billion, equating to an operating margin of 25.6%, significantly exceeding pre-Covid levels. Exchange rate fluctuations had a substantial negative impact on the half-year period. The Group share of net profit amounted to €3.0 billion.

Highlights of the first half of 2024 included the following:

Continued organic revenue growth.
Substantial negative impact of exchange rate fluctuations, particularly on Fashion & Leather Goods.
Growth in revenue in Europe and the United States, exceptional growth in Japan arising in particular from purchases made by Chinese travelers.
Performance of Wines & Spirits reflecting the ongoing normalization of demand that began in 2023.
Good resilience in Fashion & Leather Goods, which saw its operating margin remain at an exceptional level, especially for flagship brands Louis Vuitton and Christian Dior Couture.
Rapid growth in fragrances and makeup, and ongoing success of our Maisons’ iconic lines.
Powerful creative momentum at all the Watches & Jewelry Maisons, and sustained investments in communications and in renovating stores.
Exceptional performance by Sephora, which consolidated its position as world leader in beauty retail.
Significant increase in operating free cash-flow, which came to more than €3 billion.

Financial highlights

In millions of euros	First-half 2023	First-half 2024	% Change
Revenue	42 240	41 677	-1%
Profit from recurring operations	11 571	10 649	-8%
Net profit, Group share	3 512	3 023	-14%
Operating free cash flow	1 798	3 128	+74%
Net financial debt	12 301	12 076	-2%
Equity	57 005	63 957	+12%

Revenue by business group changed as follows:

In millions of euros	First-half 2023	First-half 2024	% Change Reported Organic*
Wines & Spirits	3 181	2 807	-12%	-9%
Fashion & Leather Goods	21 162	20 771	-2%	+1%
Perfumes & Cosmetics	4 028	4 136	+3%	+6%
Watches & Jewelry	5 427	5 150	-5%	-3%
Selective Retailing	8 355	8 632	+3%	+8%
Other activities and eliminations	87	181	-	-
Total	42 240	41 677	-1%	+2%

* On a constant consolidation scope and currency basis. For the Group, the impact of changes in scope compared with the first half of 2023 was negligible and the exchange rate impact was -3%.

Profit from recurring operations by business group changed as follows:

In millions of euros	First-half 2023	First-half 2024	% Change
Wines & Spirits	1 046	777	-26%
Fashion & Leather Goods	8 562	8 058	-6%
Perfumes & Cosmetics	446	445	0%
Watches & Jewelry	1 089	877	-19%
Selective Retailing	734	785	+7%
Other activities and eliminations	(306)	(293)	-
Total	11 571	10 649	-8%

Wines & Spirits: Gradual recovery in cognac in the United States; cautious management of inventory levels among distributors

The Wines & Spirits business group saw a revenue decline (-9% organic) in the first half of 2024. Profit from recurring operations was down 26%. Champagne was down, reflecting the ongoing normalization of post-Covid demand, but remained significantly higher than in 2019. Moreover, the beginning of the year was compared to a good first half of 2023. Hennessy cognac was held back by weak local demand in the Chinese market, while the United States saw a return to growth in sales volumes in the second quarter, in a market that remained cautious. In Provence rosé wines, Château d’Esclans stepped up its international expansion while the prestigious Minuty estate was consolidated for the first time in the accounts.

Fashion & Leather Goods: Continued growth on a high basis of comparison; operating margin remained at an exceptional level

The Fashion & Leather Goods business group recorded organic revenue growth of 1% in the first half of 2024. Profit from recurring operations was down 6%. The operating margin remained at historically high levels. Louis Vuitton had a good start to the year, once again driven by its successful high-quality strategy. Nicolas Ghesquière’s Fall/Winter fashion show was the opportunity to celebrate ten years of his visionary designs at the Maison. Pharrell Williams celebrated Louis Vuitton’s spirit of travel at his latest fashion show, entitled “The World is Yours”, held at UNESCO’s headquarters in Paris. The Maison unveiled the latest chapter of its iconic Core Values campaign, featuring tennis champions Roger Federer and Rafael Nadal. Christian Dior Couture continued to show remarkable creative momentum, driven by the desirability of collections designed by Maria Grazia Chiuri and Kim Jones, whose fashion shows attracted a record number of viewers. The show presenting the 2025 Women’s Cruise collection at Drummond Castle in Scotland, showcasing traditional Scottish craftsmanship, received an extraordinary welcome. The Diorama high jewelry collection presented in Florence showcased Victoire de Castellane’s exquisite craftsmanship. The opening in Geneva of an exceptional store designed by architect Christian de Portzamparc was a highlight of the half-year period. Following the success of the leather goods Triomphe line designed by Hedi Slimane, Celine benefited from growing demand for its accessories. Loewe launched its first major exhibition in Shanghai, commissioned by Jonathan Anderson, as a tribute to the Maison’s Spanish heritage and its commitment to craftsmanship. Fendi launched the Pequin line, reinterpreting the Maison’s signature stripe. Loro Piana and Rimowa confirmed their excellent momentum. Berluti experienced a good start to the year.

Perfumes & Cosmetics: Solid momentum in fragrances and makeup; selective distribution strategy maintained

The Perfumes & Cosmetics business group recorded organic revenue growth of 6% in the first half of 2024 thanks to the ongoing success of its flagship lines, combined with powerful innovative momentum and a selective distribution policy. Profit from recurring operations remained stable. Parfums Christian Dior turned in a solid performance in all product categories and reinforced its leadership position in its strategic markets. Sauvage confirmed its position as the world’s leading fragrance, while the Maison’s iconic women’s perfume J’adore saw ongoing success. The new Miss Dior Parfum edition achieved strong growth. Makeup and skincare also contributed to the Maison’s good results, in particular Rouge Dior and Capture Totale. Guerlain enjoyed the strong performance of its fragrance innovations, in particular Néroli Plein Sud in its L’Art et la Matière collection of exceptional fragrances. Givenchy continued to see growth, driven by its L’Interdit fragrance. Benefit added new brow products to its Precisely, My Brow collection while Fenty Beauty launched a new range of haircare products and expanded its retail presence in China.

Watches & Jewelry: Sustained innovation in jewelry and watches; ongoing store renovation program, in particular at Tiffany & Co.

The Watches & Jewelry business group saw a revenue decline (-3% organic) in the first half of 2024. Profit from recurring operations was down 19%, heavily affected by exchange rate fluctuations. Tiffany & Co. continued to showcase its iconic lines through initiatives including a new campaign that received an excellent welcome. The new Tiffany Titan by Pharrell Williams collection generated an exceptional level of interest. Céleste – the 2024 Blue Book high jewelry line, unveiled in Beverly Hills in May – drew inspiration from the boundless imagination of Jean Schlumberger. Bulgari celebrated its 140th anniversary with the “Eternally Reborn” campaign, and presented the new Aeterna high jewelry collection in Rome, which achieved record-breaking revenue. Chaumet unveiled the medals for the Paris 2024 Olympic and Paralympic Games, created by its design studio. In watches, TAG Heuer strengthened its ties with sports, particularly motor sports with the successful relaunch of its historic Formula 1 collection. Hublot reaffirmed its pioneering role in the art world with a pocket watch designed in collaboration with Daniel Arsham. LVMH Watch Week – now a leading event on the international watch scene – was a major success. LVMH announced the acquisition of prestigious high-end Swiss clock manufacturer L’Epée 1839.

Selective Retailing: Remarkable performance by Sephora; DFS still held back by prevailing international conditions

In Selective Retailing, organic revenue growth was 8% in the first half of 2024. Profit from recurring operations was up 7%. Sephora achieved remarkable growth and continued to gain market share, reaffirming the brand’s strength and the powerful draw of its unique approach within the prestige beauty market, as well as its position as the world’s leading fragrance and cosmetics retailer. North America, Europe and the Middle East continued to see strong growth. DFS saw business activity remain below its 2019 pre-Covid level, with marked differences in tourist traffic between its various destinations. Le Bon Marché continued to achieve growth, driven by the department store’s differentiation strategy, with its continuously renewed selection of products and services and unique slate of events.

2024 Outlook

In an uncertain geopolitical and economic environment, the Christian Dior group remains confident and will maintain a strategy focused on continuously enhancing the desirability of its brands, drawing on the exceptional quality of its products and excellence in retail.
Our strategy of focusing on the highest quality across all of our activities, combined with the energy and unparalleled creativity of our teams, will enable us to reinforce the Group’s global leadership position in luxury goods once again in 2024.

An interim dividend of €5.50 will be paid on Wednesday, December 4, 2024.

This financial release is available on our website www.dior-finance.com.

Limited review procedures have been carried out and the related report will be issued following the board meeting.

“This document may contain certain forward looking statements which are based on estimations and forecasts. By their nature, these forward looking statements are subject to important risks and uncertainties and factors beyond our control or ability to predict, in particular those described in Christian Dior’s Annual Report which is available on the website (www.dior-finance.com). These forward looking statements should not be considered as a guarantee of future performance, the actual results could differ materially from those expressed or implied by them. The forward looking statements only reflect Christian Dior’s views as of the date of this document, and Christian Dior does not undertake to revise or update these forward looking statements. The forward looking statements should be used with caution and circumspection and in no event can Christian Dior and its Management be held responsible for any investment or other decision based upon such statements. The information in this document does not constitute an offer to sell or an invitation to buy shares in Christian Dior or an invitation or inducement to engage in any other investment activities.”

APPENDIX

The condensed consolidated financial statements for the first half of 2024 are included in the PDF version of the press release.

Christian Dior – Revenue by business group and by quarter

Revenue for 2024 (in millions of euros)

2024	Wines & Spirits	Fashion & Leather Goods	Perfumes & Cosmetics	Watches & Jewelry	Selective Retailing	Other activities and eliminations	Total
First quarter	1 417	10 490	2 182	2 466	4 175	(36)	20 694
Second quarter	1 391	10 281	1 953	2 685	4 457	216	20 983
First half	2 807	20 771	4 136	5 150	8 632	181	41 677

Revenue for 2024 (organic growth versus same period in 2023)

2024	Wines & Spirits	Fashion & Leather Goods	Perfumes & Cosmetics	Watches & Jewelry	Selective Retailing	Other activities and eliminations	Total
First quarter	-12%	+2%	+7%	-2%	+11%	-	+3%
Second quarter	-5%	+1%	+4%	-4%	+5%	-	+1%
First half	-9%	+1%	+6%	-3%	+8%	-	+2%

Revenue for 2023 (in millions of euros)

2023	Wines & Spirits	Fashion & Leather Goods	Perfumes & Cosmetics	Watches & Jewelry	Selective Retailing	Other activities and eliminations	Total
First quarter	1 694	10 728	2 115	2 589	3 961	(52)	21 035
Second quarter	1 486	10 434	1 913	2 839	4 394	140	21 206
First half	3 181	21 162	4 028	5 427	8 355	87	42 240

Alternative performance indicators
For the purposes of its financial communication, in addition to the accounting aggregates defined by IAS/IFRS, Christian Dior uses alternative performance indicators established in accordance with AMF position DOC-2015-12.
The table below lists these indicators and the reference to their definition and their reconciliation with the aggregates defined by IAS/IFRS standards, in the published documents.

Indicators	Reference to published documents
Free operating cash flow	AR (consolidated accounts, consolidated cash flow statement)
Net Financial debt	AR (notes 1.22 and 19 of the appendix to the consolidated accounts)
Gearing	AR (part 2, Comments on the consolidated balance sheet)
Organic Growth	AR (part 1, Comments on the consolidated income statement)

AR: 2023 Annual Report

This document is a free translation into English of the original French financial release dated July 23rd, 2024. It is not a binding document. In the event of a conflict in interpretation, reference should be made to the French version, which is the authentic text.

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