LVMH, the esteemed luxury goods conglomerate based in France, has exceeded expectations by delivering a strong performance in the third quarter. The company experienced a significant surge in sales as affluent shoppers continued to invest in fashion. Moreover, the relaxation of COVID-19 restrictions in China played a vital role in boosting business.
During the quarter, LVMH reported sales of €19.8 billion ($19.2 billion), reflecting a remarkable 19% increase compared to the same period in the previous year. Notably, analysts had predicted a growth rate of 13%, as per Visible Alpha consensus.
In a statement released on Tuesday, LVMH credited the robust sales to robust demand from local customers, as well as improvements in international travel, particularly in Europe, the United States, and Japan.
While the Asian market, including China, experienced relatively slower growth in the first nine months of 2022, there was a notable acceleration in the latest quarter due to the easing of health restrictions.
LVMH’s fashion and leather goods division, which encompasses prestigious brands like Louis Vuitton and Dior, played a pivotal role in driving the surge in sales with an exceptional 22% increase compared to the same period last year.
These impressive third-quarter results signify the commencement of the earnings season for the luxury goods industry. Competitors such as Hermes and Kering, the parent company of Gucci, are set to disclose their sales for the same period on October 20.
Useful links:
– LVMH Official Website
– Forebs: Forecasted Revenues for LVMH Group
