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.
- Christian Dior - S1 2024 release
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