Christian Dior (CDI) Q2 2024 earnings summary

Executive summary

• Consolidated sales for H1 2024 reached €41.7bn, down 1% year-over-year, with 2% organic growth at constant scope and exchange rates; Europe, US, and Japan showed growth, while Asia benefited from Chinese tourist spending in Europe and Japan.

• Operating profit fell 8% to €10.65bn, with a margin of 25.6%, down 1.8 points from H1 2023, but still above pre-Covid levels.

• Net profit attributable to the Group was €3.02bn, down from €3.51bn in H1 2023.

• Negative currency effects, especially from the Chinese renminbi and Japanese yen, weighed on results, particularly in Fashion & Leather Goods.

• Operating free cash flow increased significantly to over €3.1bn.

Financial highlights

• Gross margin was €28.7bn (68.8% of sales), down 2% year-over-year.

• Operating cash flow was €13.79bn, down €714m from H1 2023.

• Free operating cash flow rose to €3.13bn, up 74% from €1.80bn in H1 2023.

• Net financial debt was €12.1bn, representing 18.9% of total equity.

• Interim dividend of €5.50 per share to be paid on December 4, 2024.

Outlook and guidance

• The Group expects continued selective investment, innovation, and expansion in key brands and markets, maintaining a strategy focused on brand desirability and product quality.

• Focus remains on market share gains, operational discipline, and sustainability initiatives.

• Cautious approach to inventory and cost management amid ongoing macroeconomic and geopolitical uncertainties.