LVMH LETTER TO SHAREHOLDERS AUGUST 2019 7

SELECTIVE RETAILING STRONG GROWTH AT SEPHORA AND SUSTAINED DEVELOPMENT OF DFS IN EUROPE

The Selective Retailing business group achieved organic revenue growth of 8%. Profit from recurring operations was up 17%. Sephora recorded strong revenue growth and gained market share in all of its locations. Already present in 34 countries, the brand continued to expand its store network while online sales advanced rapidly. Le Bon Marché continued to cultivate its unique identity and the exclusivity of its product offering. DFS performed very well in the Venice Galleria, its first European location. Although a slowdown in demand has been observed in Hong Kong and Macao over the past few months, DFS s performance in these markets was good in the first half.

REVENUE

7,098m +8% (1)

PROFIT FROM RECURRING OPERATIONS

714m +17%

OPERATING MARGIN

10.1% (1) With comparable structure and constant exchange rates.

On a reported basis, revenue growth was 12 %.

Sephora