Excellent first half for Christian Dior
Paris, July 25, 2023
The Christian Dior Group recorded revenue of €42.2 billion in the first half of 2023, up 15%. Organic revenue growth was 17% compared to the same period in 2022. All business groups achieved double-digit organic revenue growth over the half year, except for Wines & Spirits, which faced a particularly high basis of comparison.
In the second quarter, organic revenue growth was 17%, in line with trends seen in the first quarter.
Profit from recurring operations for the first half of 2023 was up 13% at €11 571 million. Operating margin reached 27.4% of revenue. Group share of net profit was up 31% at €3 512 million.
Highlights of the first half of 2023 include:
- An excellent first half despite a disrupted environment,
- Significant revenue growth across all business groups except Wines & Spirits, which faced a high basis of comparison,
- Strong growth in business in Europe and Asia;
- Solid performance by champagne thanks to its value-based strategy, and a contraction in cognac compared to the first half of 2022 which benefited from the significant impact of inventory rebuilding among distributors,
- Outstanding performance by the Fashion & Leather Goods business group, in particular Louis Vuitton, Christian Dior Couture, Celine, Loro Piana, Loewe and all the other brands which gained market share worldwide,
- Rapid growth in perfume, makeup, and skincare,
- Impressive growth in high jewelry, and strong creative momentum among all Watches and Jewelry Maisons, in particular Tiffany, Bulgari, and TAG Heuer,
- Exceptional performance by Sephora, confirming its position as world leader in beauty retail,
- Return to profit for DFS, which benefited from the recovery in international travel.
- Operating free cash flow halved due to major investments in exceptional real estate and in operational inventories, notably in high jewelry.
Key figures
| Euro millions | First half 2022 | First half 2023 | % change |
| Revenue | 36 729 | 42 240 | + 15 % |
| Profit from recurring operations | 10 232 | 11 571 | + 13 % |
| Group share of net profit | 2 678 | 3 512 | + 31 % |
| Net financial debt | 10 885 | 12 301 | + 13 % |
| Total equity | 50 324 | 57 005 | + 13 % |
Revenue by business group:
| Euro millions | First half 2022 | First half 2023 | % change Reported Organic* | |
| Wines & Spirits | 3 327 | 3 181 | - 4 % | - 3 % |
| Fashion & Leather Goods | 18 136 | 21 162 | + 17 % | + 20 % |
| Perfumes & Cosmetics | 3 618 | 4 028 | + 11 % | + 13 % |
| Watches & Jewelry | 4 909 | 5 427 | + 11 % | + 13 % |
| Selective Retailing | 6 630 | 8 355 | + 26 % | + 26 % |
| Other activities and eliminations | 109 | 87 | - | - |
| Total | 36 729 | 42 240 | + 15 % | + 17 % |
* With comparable structure and constant exchange rates. The structural impact for the Group compared to the first half of 2022 was zero and the currency effect was -2%.
Profit from recurring operations by business group:
| Euro millions | First half 2022 | First half 2023 | % change |
| Wines & Spirits | 1 154 | 1 046 | - 9 % |
| Fashion & Leather Goods | 7 509 | 8 562 | + 14 % |
| Perfumes & Cosmetics | 388 | 446 | + 15 % |
| Watches & Jewelry | 987 | 1 089 | + 10 % |
| Selective Retailing | 367 | 734 | + 100 % |
| Other activities and eliminations | (173) | (306) | - |
| Total | 10 232 | 11 571 | + 13 % |
Wines & Spirits: good half year for the Champagne business; weak demand for Hennessy
The Wines & Spirits business group recorded a slight revenue decline (3% organic) in the first half of 2023, when compared to a particularly strong first half of 2022. Profit from recurring operations was down 9%. The Champagne business recorded an increase in revenue over the half year, driven by its value-based strategy. Hennessy cognac was impacted by the economic environment in the United States and by the continued high stock level of its retailers. Among Provence rosé wines, the Group acquired the prestigious, world leading domain Minuty, and Château d'Esclans stepped up its international expansion. The Joseph Phelps Vineyard, one of the most renowned wine properties in Napa Valley, California, was included in the first half accounts for the first time. Glenmorangie whisky and Belvedere vodka continued to show strong momentum in innovation.
Fashion & Leather Goods: remarkable performances by Louis Vuitton, Christian Dior Couture, Celine, Loro Piana, Loewe and Marc Jacobs
The Fashion & Leather Goods business group recorded organic revenue growth of 20% in the first half of 2023. Profit from recurring operations was up 14%. Louis Vuitton had an excellent first half, still driven by its exceptional creativity, the quality of its products and its strong links with art and culture. Nicolas Ghesquière's talent for creating a dialogue between fashion and architecture continued to elevate the strong desirability of his Women's collections to the highest level. A new chapter opened with the arrival of Pharrell Williams as Men's Creative Director. Set on the stage of the Pont-Neuf bridge in Paris, his first fashion show was met with huge enthusiasm and more than 1.1 billion views on social media reaching an all-time high. Christian Dior Couture continued to enjoy remarkable growth in all its product categories. Whether in Mumbai, Mexico City or Paris, each of the fashion shows inspired by Maria Grazia Chiuri showcased the exceptional craftsmanship of the Maison. The Lady Dior bag, an icon of the Maison Dior, was also featured in the “Christian Dior, Designer of Dreams” Exhibition at the Tokyo Museum of Contemporary Art. The exceptional Dior Homme designs by Kim Jones and the unique high jewelry creations by Victoire de Castellane elevated the superb craftsmanship of the Maison to an unprecedented new contemporary level. The success of Hedi Slimane's creations and fashion shows has continued to increase the desirability of Celine. Driven by the bold creativity of J.W. Anderson, Loewe continued to strengthen its distribution network, most notably with the opening of Casa Dubaï. Fendi opened new stores in Seoul and Tokyo. Loro Piana, Rimowa, Marc Jacobs and Berluti enjoyed an excellent start to the year.
Perfumes & Cosmetics: strong momentum in perfumes and makeup, supported by a highly selective and high-quality distribution policy
The Perfumes & Cosmetics business group recorded organic revenue growth of 13% in the first half of 2023 thanks to strong momentum achieved through innovation, combined with a highly selective distribution policy. Profit from recurring operations was up 15%. Parfums Christian Dior enjoyed a remarkable performance, strengthening its leadership in its strategic markets. Sauvage confirmed its position as the world's leading perfume, while the iconic women's fragrances J'adore and Miss Dior saw continued success. Makeup also contributed to the strong set of results from the Maison, particularly Dior Addict Lip Maximizer and Forever Skin Correct foundation. Finally, skincare had an excellent performance, particularly in the premium segment in Asia with its iconic Prestige range. Guerlain continued to grow, driven notably by the vitality of its Abeille Royale skincare and its high-end perfumery collection l’Art et la Matière, enriched with a new Jasmin Bonheur creation. Givenchy benefited from the excellent reception of its new fragrance Gentleman Society. Benefit successfully expanded its The Porefessional skincare range, while Fenty Beauty's latest creation, Hella Thicc mascara, is already one of the Maison’s bestsellers.
Watches & Jewelry: strong growth in jewelry, sustained innovation in watchmaking
The Watches & Jewelry business group achieved organic revenue growth of 13% in the first half of 2023. Profit from recurring operations was up 10%. In jewelry, Tiffany enjoyed excellent momentum with the exceptional success of the reopening of the “Landmark” in New York; The Landmark has once again become an emblematic venue for New York life. The new Lock collection continued to be rolled out worldwide and the first High Jewelry collection by Artistic Director Nathalie Verdeille was unveiled. Bulgari, which experienced strong growth, celebrated the 75th anniversary of its iconic Serpenti collection. Its high jewelry, with notably the launch of the Mediterranea collection, saw outstanding performance. Chaumet and Fred experienced strong growth over the first half. TAG Heuer celebrated 60 years of its Carrera collection. The LVMH watchmaking Maisons TAG Heuer, Hublot and Zenith unveiled many new products during LVMH Watch Week and the Watches & Wonders trade show.
Selective Retailing: excellent performance by Sephora; DFS growth supported by the recovery in international travel
In Selective Retailing, organic revenue growth was 26% in the first half of 2023. Profit from recurring operations was up 100%. Sephora performed exceptionally well and continued to gain market share thanks to its distinct and innovative product and service offering. Momentum was particularly strong in North America, Europe and the Middle East. Its distribution network continued to expand, particularly in the United Kingdom where its first store opening proved a huge success. DFS benefited from the gradual recovery in international travel and, in particular, from the return of tourists to the flagship destinations of Hong Kong and Macau. In France, the strong performance of La Samaritaine in Paris confirmed its appeal as a destination, within the context of an increasing number of Asian tourists. Le Bon Marché, which is growing strongly, continued to develop innovative concepts and benefit from a loyal French customer base as well as a return of international travelers.
Outlook 2023
In an uncertain geopolitical and economic environment, the Christian Dior group will maintain a strategy focused on continuously strengthening the desirability of its brands, by relying on the exceptional quality of its products and the excellence of their distribution.
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 2023.
An interim dividend of €5.50 will be paid on Wednesday, December 6th, 2023.
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.”
ANNEX
The condensed consolidated financial statements for the first half of 2023 are included in the PDF version of the press release.
Christian Dior Group – Revenue by business group and by quarter
Revenue first half 2023 (Euro millions)
| 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 |
Revenue first half 2023 (organic growth compared to the first half of 2022)
| 2023 | Wines & Spirits | Fashion & Leather Goods | Perfumes & Cosmetics | Watches & Jewelry | Selective Retailing | Other activities and eliminations | Total |
| First quarter | + 3 % | + 18 % | + 10 % | + 11 % | + 28 % | - | + 17 % |
| Second quarter | - 8 % | + 21 % | + 16 % | + 14 % | + 25 % | - | + 17 % |
| First half | - 3 % | + 20 % | + 13 % | + 13 % | + 26 % | - | + 17 % |
Revenue first half 2022 (Euro millions)
| 2022 | Wines & Spirits | Fashion & Leather Goods | Perfumes & Cosmetics | Watches & Jewelry | Selective Retailing | Other activities and eliminations | Total |
| First quarter | 1 638 | 9 123 | 1 905 | 2 338 | 3 040 | (41) | 18 003 |
| Second quarter | 1 689 | 9 013 | 1 714 | 2 570 | 3 591 | 149 | 18 726 |
| First half | 3 327 | 18 136 | 3 618 | 4 909 | 6 630 | 109 | 36 729 |
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 1.23 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: 2022 Annual Report
This document is a free translation into English of the original French financial release dated July 25th, 2023. 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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