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LVMH sales soar 19 per cent, despite China slowdown

(Source: Reuters )

Sales at LVMH, the world’s largest luxury group, rose by 19 per cent in the three months to June, as robust growth in the US and Europe helped it offset a new round of lockdowns in China.

LVMH, which owns dozens of high-end labels ranging from Tiffany to Moet & Chandon, said sales came to 18.73 billion euros (US$18.95 billion) in the second quarter, beating analyst expectations for 17.13 billion euros in a Visible Alpha consensus cited by UBS.

The growth pace in the second quarter was a tad slower than in the first three months of 2022, when group sales had climbed by 23 per cent.

Demand for fashion and leather goods from its star labels Louis Vuitton and Dior eased up slightly from high levels at the start of the year, rising by 19 per cent in the quarter, as flows of travelling shoppers returning to Europe helped to mitigate disruptions to business in China.

The wine and spirits division bounced back strongly from logistical and supply constraints earlier this year, growing 30 per cent, while sales from selective retailing, which includes Sephora, rose 20 per cent.

LVMH has been tapping into strong, post-pandemic demand for its designer labels as socialising resumes and shoppers continue to spend savings from lockdowns, brushing off concerns about turbulent stock markets and rising prices.

The company’s strong second quarter is setting the tone for rivals, with Gucci-owner Kering reporting its own first-half results on July 27 and Hermes on July 29.

  • Editing by Silvia Aloisi, of Reuters.

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