LVMH Moët Hennessy - Louis Vuitton (LVMHF) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon everyone and welcome to today's conference call. I'm Rodolphe Feuzin, Director of Financial Communications and with me is Cecile Cabanis, our Chief Financial Officer. Cecile will start with key highlights of the first half of 2026. I will then share details on performance by business groups, after which Cecile will comment on the financials and conclude. And then we'll be happy to take your questions. Turning now to our announcement, our release was issued a short while ago in French and English and is available on LVMH website, lvmh.com, as are the slides for today's call. The habitual safe harbor statement is included in our press release and on slide two of our presentation. Let's now move on to today's topic, our first half figures, and passing over to Cecile. Thank you Rodolphe. Hello everyone, thank you for attending the call and I will dive right into the results starting on slide 3. LVMH delivered a very solid set of results in the first half and a sequential acceleration on organic growth in the second quarter. Group revenue rose 2% organic in H1 at €38.6 billion with Q2 up 3% organic. Operating margin reach a very high level of 22.5%, very good outcome as we remain focused and disciplined. Profit from recurring operation closed at 8.7 billion, reflecting a significant negative currency impact. Net income was in line with last year. Finally, another semester of strong free cash flow delivery reaching more than 4 billion euros. Let's turn to slide 4 with a few qualitative comments on the semester. Overall, the first half of 2026 confirms the strength and resilience of our model. Middle East conflict impacts H1 top line growth by a negative 1 point. Both Q1 and Q2 suffered from this point. So if we exclude that, organic growth is rather 4% in th...