French luxury group LVMH is defying the impact of new health measures in the Chinese market and showing positive prospects. In the first six months of the fiscal year, LVMH achieved a 21% increase in sales, reaching €36.7 billion. The group also recorded a net profit of €6.5 billion, a 23% increase compared to the same period last year. This strong performance is particularly evident in the Fashion and Leather Goods sector, which saw a 24% organic sales increase and a 33% increase in operating profit. The success of Louis Vuitton, the most valuable French brand, played a significant role in this achievement, along with other brands under the LVMH umbrella such as Christian Dior, Celine, Fendi, Loewe, Loro Piana, and Marc Jacobs.
Selective Retailing, driven by Sephora’s new omnichannel strategy, also experienced growth with a 22% increase in sales. However, DFS, which operates duty-free shops, faced challenges due to the health situation in China and the ongoing slowdown in tourist flows.
The Watches and Jewelry houses saw a 16% increase in sales, while the Wines and Spirits division enjoyed a 14% growth, thanks to increased champagne volumes and strong demand for cognac. The Perfumes and Cosmetics category experienced a 13% organic sales growth, fueled in part by the success of Sauvage, the best-selling fragrance worldwide, and the rebound in makeup sales as mask-wearing restrictions eased.
Despite the challenges posed by the current geopolitical and health context, LVMH remains confident in its global luxury market leadership and is committed to maintaining its excellence in product quality, distribution, and the cultural dimension of its Houses. The company plans to recruit 2,000 new positions by the end of the year to support the growing demand for its products and ensure the continuation of its renowned craftsmanship.
In terms of geographical regions, Asia’s results were impacted by the health measures in China, but Europe, Japan, and the United States all showed strong growth compared to the first half of 2021.
Overall, LVMH’s performance in the first half of the year is a testament to the group’s resilience and ability to adapt to challenging circumstances. With its diverse portfolio of luxury brands and strategic initiatives, LVMH is well positioned for continued success in the global luxury market.
Useful Links:
1. LVMH Official Website: Learn more about LVMH and its luxury brands.
2. Louis Vuitton Official Website: Explore the world of Louis Vuitton, the most valuable French brand under LVMH.
