LVMH Starts Year With 29% Revenue Increase
Featured Image: Kristen Pelou
The world’s leading high-quality luxury group has recorded a revenue of 18 billion euros in the first quarter of 2022. It’s up by 29% compared to the same quarter last year.
The press release addresses the current geopolitical context and the impact of the pandemic on the world and the luxury industry, stating — “LVMH remains both vigilant and confident at the beginning of this year. This Group will continue to pursue its strategy focused on the development of its brands, driven by strong innovation and investment as well as a constant quest for quality in its products and their distribution.”
The success of the first quarter was directly impacted by the previous quarter, which finished 2021 with a confident outlook for the year as it pursues a strategy that develops its brands and ensures the long-term development of their expertise. This quarter, LVMH recorded an organic revenue of 23%. Both the United States and Europe achieved double-digit revenue growth. Asia continued to grow over the quarter in spite of the growing coronavirus cases in China.
The Wines & Spirits group achieved an 8% increase in comparison to Q1 2021 with a revenue of $1.6 million euros. This encompasses 25 houses, with exceptional brands Moët & Chandon, Krug, Veuve Clicquot, Hennessy and Château d’Yquem among them.
The Fashion & Leather Goods group achieved a 35% increase in comparison to Q1 2021 with a revenue of $9.1 million euros. Its organic revenue grew by 2%. Included in the success were Louis Vuitton’s that was Virgil Abloh’s final Autumn-Winter 2022 Collection and Nicolas Ghesquière’s first Women’s collection. Other brands with good quarters included Loro Piana, Loewe, and Marc Jacobs. Dior’s historic birthplace at 30 Avenue Montaigne reopened in Paris with continued success of Maria Grazia Chiuris’s designs and the Lady Dior.
Perfumes & Cosmetics achieved a 23% reported growth with a 17% organic growth. The group brought in $1.9 million euros driven by perfume and makeup. The company also noted a strong progress by Sephora and the success of Givenchy’s Irresistible and Gentleman, the launch of Benefit’s Boi-ing Bright On concealer, a strong contribution by Maison Francis Kurkdjian’s Baccarat Rouge 540. Finally, watches & jewelry brought in $2.3 million euros with a reported 24% increase and 19% organic revenue growth. There was an excellent performance by Tiffany & Co., which was officially acquired in January 2021 and Bulgari also had a good year.
Finally, the company concluded its statement by stating that it relies on “the talent and motivation of its teams, the diversity of its businesses, and the geographical balance of its revenues to further strengthen its global leadership position in luxury goods in 2022.”