Luxury conglomerate LVMH has reported a 17 per cent year-on-year growth in revenue for the quarter that ended March 31, reaching 21 billion euros (US$23.1 billion). The strong performance was driven by the resurgence in Asia as demand increases and cross-border travel rebounds.
Luxury conglomerate LVMH has reported a 17 per cent year-on-year growth in revenue for the quarter that ended March 31, reaching 21 billion euros (US$23.1 billion). The strong performance was driven by the resurgence in Asia as demand increases and cross-border travel rebounds.
According to the company, the double-digit gain was mainly due to the strong performance in Europe and Japan, and a significant increase in sales in Asia. In Japan alone, the group recorded a 34 per cent organic increase in revenue, while elsewhere in Asia, sales rose by 14 per cent year on year.
The group’s selective retailing sector, which includes Sephora and DFS, has gained momentum from the recovery in travel, especially after the reopening of China borders. The sector generated 3.9 billion euros ($4.3 billion), representing a 28 per cent organic growth.
LVMH said its duty-free business, where revenue is still below 2019 levels, experienced a “progressive return of tourists to Hong Kong and Macao”. The group opened a concession in domestic Terminal 3A at Chongqing Jiangbei Airport.
Meanwhile, the fashion and leather goods division’s turnover was up 18 per cent year on year. The group opened its first Fendi flagship boutique in South Korea – Palazzo Fendi Seoul – and the brand’s largest store in Omotesando in Tokyo in February. The perfume and cosmetics and watches and jewellery arms saw sales up by 10 per cent and 11 per cent respectively.
The strong performance of LVMH is a testament to the resilience of the luxury sector in the face of the pandemic. Chinese consumers, who are the biggest spenders in the luxury market, are now free to hit the stores again and splurge on luxury goods.
Earlier this year, LVMH appointed Pietro Beccari and Bernard Arnault’s daughter Delphine Arnault as new CEOs for its Louis Vuitton and Christian Dior brands, marking the luxury empire’s most significant organisational changes in its history.
Sources: https://insideretail.com.au/business/lvmh-sales-surge-as-chinese-resume-luxury-spending-202304
