The revenge spending trend following the Covid-19 pandemic is more than just media hype.
LVMH, the world’s largest luxury goods group, has posted revenues of 56.5 billion euros (AUD$88.27 billion) for the first nine months of 2022 – a surge of 28 per cent compared to the same period last year.
The Fashion and Leathergoods division, including Louis Vuitton, was the major contributor to the multinational’s coffers with sales of 27.82 billion euros (AUD43.45 billion).
But the Perfume and Cosmetics division saw a major uptick of 19 per cent to reach revenues of 5.577 billion euros (AUD$8.71 billion) for the first nine months of the year – up from 4.668 billion euros (AUD$7.29 billion) in 2021.
Parfums Christian Dior was a bullet performer, thanks to the ongoing success of its pillar fragrances – Sauvage, Miss Dior and J’adore – notably in Europe and the US.
Guerlain was also on a roll with its Acqua Allegoria fragrance line and Abeille Royale skincare franchise.
Q3 proved bullish with double digit growth for the Perfume and Cosmetics division to 1.959 billion euros (AUD$3.06 billion), by contrast to 1.64 billion euros (AUD$2.56 billion) over the same period last year.
LVMH’s Selective Retailing division includes Sephora and posted 20 per cent growth in the first nine months of the year to 10.095 billion euros (AUD$15.76 billion). Sales for the retail beauty specialist network were particularly strong in North America, France and the Middle East.
Digital sales have slowed since the re-opening of physical retail in major markets, said Jean Jacques Guiony, Chief Financial Officer of LVMH.
Digital sales are still growing strongly and account for 13 per cent of LVMH’s total sales, but outside mainland China physical retail is growing faster than digital across LVMH’s entire business, he added.
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