Lagardere travel business post strong growth driven by China

1 min readUpdated May 28, 2025Aug 12, 201911:08 PM

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French-headquartered Lagardere says its travel retail business achieved a 15.8-per-cent increase in consolidated sales in the first half-year.

Like-for-like sales were up 6.5 percent, the difference attributable to a €134 million positive impact resulting from the acquisition of HBF and of Smullers in the Netherlands, and to a €26 million positive foreign exchange impact.

Earnings before interest and tax for the travel retail division rose 12 percent to €46 million.

In the Asia-Pacific region, sales grew 6.5 percent, largely driven by organic growth in China.

Consolidated group revenue, incorporating the company’ publishing, sports and entertainment business activities, grew by 6.7 per cent on a like-for-like basis, to €3.612 billion.

Group recurring earnings before tax and interest came in at €153 million for first-half, up from €139 million a year earlier, owing mainly to business growth at Lagardere Travel Retail and a busy sporting calendar for Lagardere Sports and Entertainment.

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What this means

Lagardere's robust 6.5% organic growth in Asia-Pacific, primarily China, confirms the enduring strength of the travel retail sector in the region. This performance, especially as competitors like Louis Vuitton adjust their physical footprint in China, suggests a well-executed strategy by Lagardere in a dynamic market. While Panpuri targets extensive store expansion in Asia and Alo Yoga uses Tmall for China entry, Lagardere's organic growth indicates effective existing operations rather than solely new ventures. The focus on travel retail mitigates some risks seen in broader retail, but potential geopolitical shifts or travel restrictions remain a constant threat. Watch their next quarterly report for continued China-driven growth figures.

Sarah Chen · Retail News Asia newsroom

Questions & Answers

What specifically caused the strong growth in Lagardere's travel retail consolidated sales?

The 15.8 per cent increase in consolidated sales was due to a 6.5 per cent like-for-like sales growth, a €134 million impact from the acquisition of HBF and Smullers, and a €26 million positive foreign exchange impact.

How did Lagardere's overall group revenue perform in the first half of the year?

Consolidated group revenue, which includes publishing, sports and entertainment, grew by 6.7 per cent on a like-for-like basis. This brought the total group revenue to €3.612 billion for the first half-year.

Which division was the main driver of the increase in group recurring earnings before tax and interest?

The main reason for the increase in group recurring earnings before tax and interest, which rose to €153 million, was business growth within Lagardere Travel Retail. A busy sporting calendar also contributed through Lagardere Sports and Entertainment.

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