The LVMH Group, a leading luxury conglomerate, has announced impressive sales growth in the first quarter of 2021, surpassing pre-pandemic levels. The fashion and leather goods sector, in particular, has been driving this growth, leading to speculations of revenge spending among consumers. Between January and March, the global giant reported an organic sales increase of 30% compared to the same period in 2020, reaching a total of 14 billion euros. This surpassed expectations, which predicted a 17% increase, and demonstrated an 8% improvement compared to the first quarter of 2019, excluding the impact of acquisitions and exchange rate fluctuations.
The fashion and leather goods division experienced significant growth, with organic sales increasing by 52% compared to 2020 and 37% compared to 2019. These figures were nearly double what experts had forecasted. LVMH attributed this success to the outstanding performances of its most valuable French brands, Louis Vuitton and Christian Dior. The fragrance and cosmetics sector also saw a moderate increase in sales, with a growth of 18% compared to 2020 and a slight decrease of 4% compared to 2019. LVMH noted that strong sales from online channels among local customers partially offset the negative impact of international travel restrictions and the closure of physical stores. However, the selective retail sector, represented by the Sephora network, continued to struggle due to the significant decline in international flows, resulting in a 30% contraction in sales compared to the first quarter of 2019.
In terms of watches and jewelry, sales increased by 35% compared to the first quarter of 2020 and 1% compared to the first quarter of 2019. This noteworthy result includes the figures of newly-acquired jewelry house Tiffany & Co, which joined the LVMH Group earlier this year.
The wine and spirits sector reported impressive sales growth of 36% compared to the first quarter of 2020, and 17% compared to the first quarter of 2019. LVMH specifically highlighted the strong performance of champagne and cognac, which experienced respective increases of 22% and 28% compared to the first quarter of 2020. The Asian market particularly demonstrated a significant rebound with an 86% increase in sales.
The group’s strong results were primarily driven by the United States, where sales increased by 23% compared to the first quarter of 2020 and 15% compared to 2019. However, the standout region was Asia excluding Japan, with LVMH experiencing an astounding 86% increase in revenue compared to the first quarter of 2020 and 26% compared to the first quarter of 2019. Europe, on the other hand, faced challenges due to store closures and the decline in tourism, resulting in a 9% decrease in revenue compared to the first quarter of 2020.
Upon the release of these impressive results, LVMH’s stock rose by nearly 3% on the Paris Stock Exchange, solidifying its position as the top performer in the CAC 40. The luxury group’s market capitalization now exceeds 300 billion euros.
For more information on LVMH’s performance in the first quarter of 2021, visit:
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