Sales At LVMH Soar Despite China Losses

(CTN News) – With the holiday LVMH  shopping season bearing down on the world’s largest luxury group, strong sales have been reported.

LVMH said that it had experienced a second straight record year for revenue and profits. This was in spite of geopolitical tensions and the high cost of living in the country.

In the final three months of the year, sales reached almost $25bn (£19.9), an increase of 9% over the previous three months.

Covid saw strong growth in Europe, the US and Japan, which helped the company make up for losses in China due to the lockdowns imposed by Covid.

While LVMH did experience a 20% drop in growth during the first nine months of the year in Asia, as the world’s second largest economy doubled down on its zero-COV policy in the region.

In spite of this, Bernard Arnault, the chairman and chief executive of LVMH, said he remained cautiously optimistic about the future of Chinese business.

The group’s earnings presentation included a statement by Mr Arnault that said: “We have every reason to be confident, indeed optimistic, about China.”

As an example of what they could expect in the future, he pointed to their Macau stores as an example. “Business is back, the Chinese are buying again,” he told me.

The brands that belong to LVMH include Tiffany’s, Christian Dior, Sephora, Hennessy, and Moët.

Louis Vuitton’s designer label performed exceptionally well on the market. This is the first time that its revenue has exceeded $21.7 billion. In a new collaboration, the Japanese contemporary artist Yayoi Kusama, who is known for the colourful dots on her art, has recently been working with the label.

The earnings of LVMH are regarded as a bellwether of the market’s performance in the luxury sector.

Overall, Bain and Company believes that personal luxury goods spending will increase in the near future.

As a result of a decline in global economic conditions, the personal luxury market is expected to see an increase of about 3-8% next year, even as a result of the downturn in global economic conditions, according to a report from the consulting firm.

The leadership of LVMH underwent a change earlier this month. Arnault appointed his daughter to lead Dior, one of the most prestigious fashion houses in the world. During her tenure as Louis Vuitton’s chief executive, Delphine Arnault, 47, replaced Pietro Beccari.

Among Mr Arnault’s children, all five hold management positions at the group’s brands.

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