The world's largest luxury company, LVMH, announced first-quarter sales that were up 17%, more than doubling analysts' predictions as China quickly recovered from COVID-19 lockdowns.
For the three months ending in March, sales at the French corporation, which owns the Louis Vuitton and Dior fashion houses as well as Hennessy cognac and American jeweler Tiffany, totaled 21.04 billion euros ($23.10 billion).
According to a Visible Alpha consensus, the 17% rise on an organic basis—which eliminates the impact of currency fluctuations and acquisitions—was more than the 8% growth anticipated by analysts.
After lockdowns hurt sales at the end of 2022, the statistics for LVMH, a high-end industry barometer that has been immune to rising inflation and market unrest, provided the first glimpse of the scope of the Chinese rebound.
Sales in Asia, excluding Japan, increased by 14% in the first quarter, according to LVMH, up from an 8% fall in the fourth quarter of last year. The company also predicted that China will be the main driver of growth in 2023.
The situation was more complicated in the US, where the robust demand that gave European fashion businesses a boost the previous year is beginning to flag, particularly among younger, lower-spending consumers.
US sales increased by 8% in the quarter, exceeding analysts' expectations, although LVMH finance chief Jean-Jacques Guiony claimed that the less exclusive Sephora retail chain of beauty stores was mostly to blame for the development.
"For the rest, the business is slowing down a bit," he said, citing softer demand for fashion and leather goods, as well as jewelry.
In 2022, the Americas accounted for 27% of LVMH's revenue, and Asia outside of Japan accounted for 30%.
Since the beginning of the year, LVMH's shares have increased 23%, outpacing the French blue-chip index's 14.5% growth and giving the luxury goods firm a market capitalization of 420 billion euros, which is double its level from three years ago and solidifies its position as the most valuable company in Europe.
(Source:www.usnews.com)
For the three months ending in March, sales at the French corporation, which owns the Louis Vuitton and Dior fashion houses as well as Hennessy cognac and American jeweler Tiffany, totaled 21.04 billion euros ($23.10 billion).
According to a Visible Alpha consensus, the 17% rise on an organic basis—which eliminates the impact of currency fluctuations and acquisitions—was more than the 8% growth anticipated by analysts.
After lockdowns hurt sales at the end of 2022, the statistics for LVMH, a high-end industry barometer that has been immune to rising inflation and market unrest, provided the first glimpse of the scope of the Chinese rebound.
Sales in Asia, excluding Japan, increased by 14% in the first quarter, according to LVMH, up from an 8% fall in the fourth quarter of last year. The company also predicted that China will be the main driver of growth in 2023.
The situation was more complicated in the US, where the robust demand that gave European fashion businesses a boost the previous year is beginning to flag, particularly among younger, lower-spending consumers.
US sales increased by 8% in the quarter, exceeding analysts' expectations, although LVMH finance chief Jean-Jacques Guiony claimed that the less exclusive Sephora retail chain of beauty stores was mostly to blame for the development.
"For the rest, the business is slowing down a bit," he said, citing softer demand for fashion and leather goods, as well as jewelry.
In 2022, the Americas accounted for 27% of LVMH's revenue, and Asia outside of Japan accounted for 30%.
Since the beginning of the year, LVMH's shares have increased 23%, outpacing the French blue-chip index's 14.5% growth and giving the luxury goods firm a market capitalization of 420 billion euros, which is double its level from three years ago and solidifies its position as the most valuable company in Europe.
(Source:www.usnews.com)