LVMH Records €18 billion Revenue for Q1 2022
The group revealed that all its business groups achieved double-digit growth amidst global uncertainties.
LVMH Moët Hennessy Louis Vuitton, the world’s largest luxury conglomerate, has had a great start to 2022. Its first quarter financial results recorded revenue of €18 billion, a 29 per cent increase compared to the same period in 2021. Organic revenue was 23 per cent. The group revealed that all its business groups achieved double-digit growth, except its Wines & Spirits division, which continued to face supply constraints.
Geographically, the US and Europe both logged double-digit revenue growth, dispelling concerns about the impact of the war in Ukraine on its sales. While in Asia (excluding Japan), demand continued to increase despite the effects of a tightening of health restrictions in Mainland China. Chief financial offer Jean-Jacques Guiony shared that between 15 per cent to 25 per cent of its stores in the country had to be closed since 15 March. However, Guiony is confident that the Chinese market luxury will bounce back as it has in the past.
“The Chinese authorities have demonstrated an ability to take very energetic and broad-reaching measures to contain the pandemic in a fairly short period of time, so one could be hopeful that they will do the same again,” he said.
The various global events in the first quarter of 2022 definitely altered the outlook for the luxury conglomerate. Strong sales in the US, which was up 26 per cent, overtook China to be the group’s largest market. Europe grew by 45 per cent and Japan by 30 per cent.
In the Fashion & Leather goods division, it posted organic revenue growth of 30 per cent in Q1. This is mainly due to its two star brands: Louis Vuitton and Dior. The former presented the late Virgil Abloh’s final Autumn/Winter 2022 menswear collection earlier in February, while Nicolas Ghesquière unveiled the women’s collection at the Musée d’Orsay in Paris — a first for the brand. At Dior, the Maison reopened its historic flagship at 30 Avenue Montaigne, a symbol of the couture house’s exceptional savoir-faire and a holistic experience of Dior’s world.
Other brands under the division like Fendi, also posted “solid growth” under the direction of Kim Jones, while Celine achieved stunning success for its ready-to-wear and leather goods lines designed by Hedi Slimane.
At the Watches & Jewellery division, LVMH announced its organic sales grew by 17 per cent compared to the same period last year. The group shared that Tiffany & Co. had a solid start to the year with healthy demand from the US market. It noted that the new Knot collection was particularly successful. For Bvlgari, the main attractions would be its Serpenti line as well as its high jewellery and watch collection, especially the Octo Finissimo Ultra watch, which holds the title of the world’s thinnest mechanical watch.
For watchmaking houses, brands continued to showcase exceptional pieces. They had done so at the recently concluded Watches & Wonders Geneva 2022 fair. TAG Heuer, Zenith and Hublot all displayed new products to cement itself to be one of the top watch brands in the world.
For the other divisions, its Perfumes & Cosmetics sales saw a 17 per cent increase. In Selective Retailing, organic revenue growth was up 24 per cent, with Sephora leading the charge.
“In the current geopolitical context and in light of the ongoing impact of the pandemic, LVMH remains both vigilant and confident at the beginning of this year. The Group will continue to pursue its strategy focused on the development of its brands, driven by strong innovation and investment as well as a constant quest for quality in its products and their distribution,” said the group in a release.
“LVMH relies on the talent and motivation of its teams, the diversity of its businesses and the geographical balance of its revenues to further strengthen its global leadership position in luxury goods in 2022.”
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