Luxury group LVMH has experienced a significant increase in sales, with an organic growth of 20% since the beginning of the year compared to the same period in 2021. This surge can be attributed to the recovery of Chinese consumption as sanitary measures have eased. The third quarter has seen a gradual recovery in Asia, driving LVMH’s sales to exceed €56.5 billion in the first nine months of 2022. The company’s success stems from strong local demand and the resumption of international flows in regions such as Europe, the USA, and Japan. Notably, LVMH has observed an improvement in its performance in Asia, particularly in China, due to the partial lifting of certain Covid-related restrictions.
Examining the nine-month period, the Fashion & Leather Goods division has shown impressive growth with a 24% increase. This segment accounts for nearly half of LVMH’s sales, amounting to €27.8 billion. The success of renowned brands like Dior and Louis Vuitton, both featured in the recent Top 10 most valuable luxury brands in the world, has greatly contributed to this division’s performance.
Selective distribution has also experienced a notable 20% increase, thanks to the implementation of an omnichannel strategy by Sephora. The Watches & Jewelry segment and the Wines & Spirits activity have experienced growth as well, with a 16% and 14% increase, respectively. Despite logistical disruptions in certain regions, the performance of champagne and cognac houses has driven the growth of the Wines & Spirits division.
LVMH’s Perfumes & Cosmetics division has demonstrated a global growth of 12% since the beginning of the year. Although high-end perfume sales in France have surpassed their pre-pandemic levels, the division experienced a slowdown in the second quarter after a promising first quarter. Nonetheless, the division has shown signs of recovery.
Overall, LVMH’s success can be attributed to the revival of Chinese consumption, the resumption of international flows, and strong local demand. The exceptional performance of divisions like Fashion & Leather Goods, Selective Distribution, Watches & Jewelry, Wines & Spirits, and Perfumes & Cosmetics has contributed to the company’s growth.
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1. Business of Fashion
2. Vogue
