The LVMH Group, the world’s leading luxury goods company, has just released its impressive growth figures for the first half of 2021. Despite the ongoing challenges posed by the Covid-19 crisis, LVMH reported a record-breaking +56% increase in sales compared to the same period last year, reaching an impressive €28.7 billion.
One notable aspect of this growth is that it is not solely driven by the recovery from the pandemic, but also reflects an organic growth of +11% compared to 2019, surpassing the pre-pandemic results of the group. This indicates the resilience and strength of LVMH’s business strategy.
The Fashion and Leather Goods category has been a major driver of LVMH’s success, with a remarkable +81% increase in sales compared to 2020 and +38% compared to 2019. This growth can be attributed to strong demand in the United States and Asia. Specifically, Louis Vuitton’s profitability has been exceptional, while Christian Dior and Celine’s ready-to-wear and leather goods have also achieved outstanding performances.
The Wines & Spirits category also experienced significant growth, with sales up by +12% compared to the first half of 2019. This was primarily driven by increased volumes of champagne and cognac, which saw rises of +10% and +6% respectively. On the other hand, the Watches & Jewelry segment reported a more modest +5% increase, while the Perfumes & Cosmetics category encountered a -3% decline compared to 2019. LVMH attributed this decline to its selective distribution strategy for major brands.
However, the Selective Retailing segment suffered a -25% decline due to the continuing impact of the global pandemic on tourism. Nevertheless, LVMH anticipates a recovery in this category in the coming months, with the recent opening of La Samaritaine and strategic partnerships in the digital sphere with companies like Zalando and Feelunique.
What sets LVMH apart and allows it to achieve such exceptional results in the midst of a crisis is its investment and innovation strategies. The company remains committed to continuous growth and strengthening its position as a global market leader in the post-pandemic economic recovery. Bernard Arnault, Chairman and CEO of LVMH, emphasized the contribution of LVMH to France’s employment and product origin, stating, “The growth of LVMH benefits France, as the primary source of employment and origin of our products, to which our Maisons are proud to contribute.”
In line with this positive outlook, LVMH recently announced its plans to acquire a 60% stake in the brand Off-White and to take a majority stake in Etro through the L Catterton investment fund. These strategic moves further demonstrate LVMH’s commitment to expanding its luxury portfolio and maintaining its leading position in the market.
Sources:
– https://www.lvmh.com/news-documents/press-releases/h1-2021-results/
– https://www.businessoffashion.com/news/luxury/lvmh-posts-record-sales-beating-pre-pandemic-levels
