Luxury conglomerate LVMH is reaping the rewards now that Chinese consumers are free to hit the stores again and splurge on luxury goods.
The French company has reported 17 per cent year-on-year growth for the quarter that ended March 31, reaching 21 billion euros (US$23.1 billion) in revenue.
The double-digit gain was driven by the strong performance in Europe and Japan and a significant resurgence in Asia as demand increases and cross-border travel rebounds. In Japan alone, the group recorded a 34 per cent organic increase in revenue. 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), which represents 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.
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.
