With economic headwinds gathering momentum and global leaders on high alert, many businesses would expect a general slowdown with revenue most likely to take a dip as consumer confidence falls. For French luxury conglomerate LVMH Moët Hennessy Louis Vuitton, it was a smooth third quarter as the company posted double-digit growth of 19 per cent compared to the same period last year.
For the past three months to 30 September, the group’s sales totalled €19.76 billion and the results have well-exceeded the estimates of €18.83 by analysts from Bloomberg. The group also reported that all of its business units recorded healthy double-digit growth. Overall, in the first nine months of 2022, LVMH’s revenue grew by 28 per cent which amounted to €56.5 billion when compared to the same period in 2021.
Breaking down the results further into its geographical contribution, the group noted that a dip in sales from the US where it saw a 22 per cent growth for the last quarter. For the third quarter, it reported only 11 per cent as the euro slipped below the US dollar and prompted higher sales in capitals like Paris and Milan. The robust demand from domestic clients and the improvement in foreign travel contributed to the strong increases in Europe, the US, and Japan since the year’s beginning. Over the first nine months of 2022, Asia (including China) saw slower growth, but the region’s most recent quarter saw a surge due to the partial relaxation of health regulations.
At the fashion and leather goods division, the key engine of growth of the group saw its revenue expand by 22 per cent for the third quarter. The group highlighted the continued successes of Louis Vuitton which was “driven as ever by an exceptional creativity and the quality of its products.” Many products of the Maison enjoy good reception from customers and a special mention goes to the Tambour Twenty collector’s watch which celebrated its 20th anniversary and was embodied by Bradley Cooper. The timepiece was an immediate hit and went out of stock.
Stablemate Christian Dior also enjoyed good sales across its product range and the group spotlighted the reopening of the Maison’s 30 Avenue Montaigne in Paris as “overwhelmingly successful”. Similarly, Celine and Loewe saw strong growth under the creative direction of Hedi Slimane and J.W. Anderson respectively. Fendi celebrated the 25th anniversary of its iconic Baguette bag in a special fashion presentation in New York which saw supermodel Linda Evangelista closing the show.
The watch and jewellery unit of the group is its second-biggest powerhouse and it recorded a growth of 16 per cent for the third quarter which amounted to €2.66 billion. Supported by the robust momentum of Tiffany & Co. and its various activations like the “Vision & Virtuosity” exhibition in Saatchi Gallery in London and the launch of its Lock unisex bracelets in North America, the jeweller’s growth was still in the double digits. Though the group has acknowledged that growth slowed compared to its earlier quarters, its performance was “still very much satisfactory”.
Over at Bvlgari, the group reported that the Roman jewellery continued to strengthen its iconic collections through showcases like the “Eden: The Garden of Wonders”, which was held in Shanghai and Beijing. The airing of the film “Inside the Dream” enabled fans of the brands to gain a better understanding of the creative process behind many of its high jewellery pieces and it starred longtime friends of the brand like Blackpink’s Lisa, Zendaya, Priyanka Chopra Jonas, Chiara Ferragini and Lily Aldridge. In the watches business, TAG Heuer unveiled its new Calibre E4 — Porsche Edition smartwatch while Hublot continues its countdown to the 2022 FIFA World Cup as its official timekeeper.
Other business units like the perfumes and cosmetics, wines and spirits and selective retailing, reported growth of 10 per cent, 14 per cent and 15 per cent respectively.
LVMH is optimistic in the continuation of its present growth despite an unsettling geopolitical and economic environment and will continue to pursue a cost-cutting and selective investment strategy. The group’s strategy will continue to be centred on developing the desirability of its brands by ensuring quality, the perfection of its distribution and being responsive to the needs of its customers.
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