MC Lvmh Moet Hennessy Louis Vuitton SE

By Olivia Bugault

France's LVMH Moet Hennessy Louis Vuitton SE reported first-half results after the Paris market closed Monday. Here's what we watched:

OPERATING PROFIT: The luxury-goods company said operating profit fell 68% to 1.67 billion euros ($1.96 billion), below market expectations of EUR2.69 billion, according to a consensus estimate provided by FactSet.

REVENUE: The owner of Louis Vuitton posted revenue of EUR18.39 billion, down 28% from EUR25.08 billion a year earlier, but broadly in line with expectations.

WHAT WE WATCHED:

-ROAD TO RECOVERY: The conglomerate didn't provide guidance for the rest of the year, citing too many uncertainties ahead due to the pandemic, and it adopted a cautious but optimistic tone when talking about the second half in its statement. "After a second quarter severely affected by the crisis, we can hope that the recovery will materialize gradually in the second half." Sales started to recover in June and should show more signs of improvements in July, LVMH's Chief Financial Executive Jean Jacques Guiony said during a conference call.

"Beyond slightly disappointing first-half earnings before interest and taxes, we are convinced that the group will recover in 2H and in 2021 thanks to its iconic brands in each division" Bryan Garnier said.

- MAJOR BRANDS RESILIENCY: LVMH's major brands were resilient during the period. Sales growth at Louis Vuitton and Dior were very buoyant in China and also improved in other regions. "Actually, in the U.S. and in Japan, June sales at Dior Couture and Louis Vuitton were respectively higher and stable," BG said. In Europe, sales weren't as good because of a lack of tourists, it added.

Write to Olivia Bugault at olivia.bugault@wsj.com

(END) Dow Jones Newswires

July 28, 2020 06:21 ET (10:21 GMT)

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