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LVMH: Luxury Giant's Sales Soar Despite China Losses
GETTY IMAGES | Louis Vuitton is on of LVMH successful brands
January 28th, 2023 | 14:05 PM | 477 views
UNITED STATES OF AMERICA
The world's biggest luxury group has reported strong sales driven by the holiday shopping season.
LVMH said they experienced a second straight record year with revenue and profits despite geopolitical tensions and high cost of living.
Sales reached almost $25bn (£19.9), a 9% increase in the final three months of the year.
The company saw strong growth in Europe, US and Japan which made up for losses in China due to Covid lockdowns.
In Asia, LVMH did experience a 20% drop in growth in the first nine months as the world's second largest economy doubled down on its zero-Covid policy.
However, LVMH chairman and chief executive Bernard Arnault said he felt cautiously optimistic about "green shoots" in China.
"We have every reason to be confident, indeed optimistic about China," Mr Arnault said at the group's earnings presentation.
He pointed to their Macau stores as a sign of what could come. "Business is back, the Chinese are buying," he said.
LVMH brands include Tiffany's, Christian Dior, Sephora, Hennessey and Moët.
Its designer label Louis Vuitton did exceptionally well. Its revenue surpassed $21.7bn for the first time. The label recently launched a new collaboration with Japanese contemporary artist Yayoi Kusama, who is known for her art made of colourful dots.
LVMH's earnings are viewed by analysts as a bellwether in the luxury market.
Bain and Company said they see a boost in spending on personal luxury goods overall.
"The personal luxury market is projected to see further growth of at least 3-8% next year, even given a downturn in global economic conditions," according to a report from the consulting company.
Earlier this month, LVMH made changes to its leadership staff. Mr Arnault, one of the world's richest men, appointed his daughter as the head of the fashion house Dior. Delphine Arnault, 47, replaced Pietro Beccari - who took over as chief executive of Louis Vuitton.
All five of Mr Arnault's children hold management positions at brands in the group.
courtesy of BBC NEWS
by Monica Miller
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