Despite suffering from losses in China, LVMH reported soaring sales numbers. The luxury goods giant announced that overall sales had increased despite a noticeable dip due to the Chinese market.
LVMH, the world’s largest luxury conglomerate, has reported strong growth from its holiday shopping season. The company’s successful brands, including Louis Vuitton, have experienced a surge in sales.
LVMH reported their second consecutive annual record, with revenue and profits remaining unaffected by geopolitical tensions and the increasing cost of living.
Sales totaled nearly $25bn (£19.9) during the last quarter, a 9% rise.
The company managed to counterbalance losses in China because of shutdowns linked to Covid, by registering impressive growth in Europe, US, and Japan.
In Asia, LVMH saw a 20% decrease in growth over the first nine months due to China’s strong commitment to its zero-Covid policy.
Bernard Arnault, the head of LVMH, expressed his guarded optimism regarding “green shoots” in China.
Mr Arnault expressed confidence and optimism in regards to China during the group’s earnings presentation.
He pointed to the stores in Macau as an indication of what could possibly come, and he noted, “We can see that business is coming back, with Chinese customers making their purchases.”
LVMH is a luxury goods conglomerate that owns several high-end labels, such as Tiffany’s, Christian Dior, Sephora, Hennessey and Moët.
Louis Vuitton recently saw its revenue exceed $21.7bn for the first time ever, thanks to its designer label. To further its success, the company has collaborated with world-renowned Japanese contemporary artist Yayoi Kusama – famous for her colourful dot art.
Analysts consider LVMH’s earnings to be a reliable indicator of the performance of the luxury sector.
Bain and Company reported that they anticipate a surge in expenditure on personal luxury goods.
The consulting company’s report predicts that, despite a potential fluctuation in the global economy, the personal luxury market will continue to rise by at least 3-8% over the coming year.
Earlier this month, LVMH saw alterations to its top brass. The luxury goods conglomerate, helmed by one of the planet’s wealthiest individuals, Mr Arnault, named his daughter Delphine to oversee fashion house Dior. She has taken over from Pietro Beccari who is now CEO of Louis Vuitton.
Mr Arnault’s five children are all involved in the management of different brands within the group.