The French luxury group Louis Vuitton Moët Hennessy (LVMH), which this year became the first European firm to exceed 400 billion euros in market capitalization, today announced a 17% increase in its sales in the first quarter of 2023 , in relation to the same period of 2022.
“LVMH makes an excellent start to the year in a geopolitical and economic context that remains uncertain”, says in a statement the group led by Bernard Arnault, alluding to the 21 billion euros ($23.1 billion) in sales during the first three months of this year.
Europe and Japan are markets in “strong progression” thanks to the local clientele and the return of international tourists.
Asia, for her part, had “a major recoverydue to the lifting of sanitary restrictions.
The department that is growing the most within the LVMH group is fashion and leather goods (where brands such as Christian Dior and Loewe appear), with an 18% increase in sales.
Chinese rebound
The 17% increase in its first-quarter sales is more than double what analysts expected, thanks to China’s recovery after the end of the COVID-19 lockdowns.
Sales of the French company, which owns the fashion houses Louis Vuitton and Dior, as well as the Hennessy cognac and the American jeweler Tiffany, amounted to 21.04 billion euros in the three months to the end of March.
Growth of 17% on an organic basis, which strips out the effect of currency fluctuations and acquisitions, compares with analyst expectations for an increase of 8%, according to a Visible Alpha consensus.
The figures from LVMH, a benchmark for the high-end industry that has proven resilient to rising inflation and market turbulence, provided the first snapshot of the scale of China’s rebound after lockdowns that sapped sales in late 2022. .
They will also help assuage investor concerns about a slowdown in the US market, where the strong demand that propelled European fashion houses last year is fading, particularly among younger, lower-spending shoppers.
LVMH said first-quarter sales grew 14% in Asia excluding Japan and 8% in the United States. This figure contrasts with the stagnation of revenues in Asia and the 15% growth of sales in the United States last year.
“Asia experienced a significant reboundthe company said in a statement.
LVMH earned 27% of its 2022 revenue in the Americas and 30% in Asia excluding Japan.
LVMH shares have appreciated 23% since the beginning of the year, surpassing the 14.5% rise in the French benchmark index and giving the luxury goods group a market capitalization of 420 billion euros, consolidating its leadership as the company most valuable in Europe.
Fashion and leather goods, but also “duty free”
“LVMH makes an excellent start to the year in a geopolitical and economic context that remains uncertain”, congratulates in the statement the group that says “watchful and confident”.
Fashion and leather goods (Louis Vuitton, Dior, Celine, Fendi), LVMH’s flagship division, made more than US$ 11 billion in sales in the first quarter (at an exchange rate of 1 euro = 1.1 USD), a growth of 18 % in relation to the first quarter of 2022.
The distribution, which includes the Sephora perfumery chain and DFS (the duty free), saw its sales increase 30%, reaching 4,000 million euros, thanks to “exceptional results” from Sephora, especially in North America, Europe and the Middle East.
The brand, already present online in the UK, opened its first store in London at the beginning of March.
DFS, the duty free, benefits from the resumption of international travel and the progressive return of travelers to the emblematic destinations of Hong Kong and Macao.
The watches and jewelry division increased 11% to reach 2.6 billion euros in sales, while perfumes and cosmetics, also up 11%, reached 2.1 billion euros.
The Wines and Spirits activity (Moët & Chandon, Veuve Cliquot, Cheval Blanc, Ruinart…) shows a turnover of 1.7 billion euros, an increase of 3%.
LVMH surpassed the threshold of 400,000 million euros of market capitalization in January, a level never reached by a European company.
With information from EFE, Reuters and AFP
Source: Gestion
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