French luxury conglomerate LVMH has exceeded expectations with a remarkable 27% increase in comparable sales for the fourth quarter of 2021. This impressive growth can be attributed to the high demand for luxury fashion and accessories during the holiday season. LVMH’s renowned brands, Louis Vuitton and Dior, played a key role in driving this success.
Overall, LVMH achieved fourth-quarter sales of €20.04 billion ($22.34 billion). The fashion and leather goods division experienced an outstanding 28% rise in sales on a like-for-like basis, surpassing analysts’ predictions of 16% growth. Interestingly, the revenues for this segment in the last quarter of 2021 were 51% higher compared to pre-pandemic levels.
All divisions within LVMH witnessed double-digit growth, with the specialized distribution division, including Sephora, leading the way with a remarkable 30% increase in revenue. This surge in sales can be attributed to consumers’ eagerness to make luxury purchases during the end-of-year holiday season, following months of lockdowns and store closures due to the COVID-19 pandemic.
LVMH’s success can be credited to its effective marketing campaigns and ability to cater to consumers on a local level. The conglomerate has capitalized on the strong demand for high-end goods and has managed to gain ground on its competitors. According to UBS forecasts, LVMH’s market share in the fashion and leather goods sector has grown to approximately 21%, compared to 16% prior to the pandemic.
In a statement, LVMH expressed confidence in its ability to sustain its growth momentum as the world gradually recovers from the health crisis. The luxury industry has experienced a robust rebound, and LVMH has been at the forefront, satisfying consumer desires and adapting to changing market conditions. With its flagship brands performing exceptionally well, LVMH continues to solidify its position as a leader in the luxury goods market.
Useful links:
– Official LVMH Website
– Business of Fashion
