LVMH, the world’s largest luxury goods group, is viewed as the canary in the coalmine of the luxe category. Over the past two years, nothing seems to have dented the global appetite for upmarket fashion, beauty, watches and jewellery and LVMH has posted record sales of 79.2 billion euros (AUD$121.48 billion) for the 2022 calendar year.
The Covid situation in China did nothing to prevent all of LVMH’s business divisions achieving double digit growth last year.
Fashion & Leathergoods sales, always the backbone of LVMH’s financial performance, rose 26 per cent. The revenues of the Louis Vuitton brand surpassed sales of 21.7 billion euros (AUD$33.29 billion) for the first time.
The world was in a celebratory mood following the easing of the pandemic and the Wines & Spirits division posted growth of 19 per cent as consumers reached for Moet & Chandon and Veuve Clicquot champagne and Hennessy Cognac.
The Perfumes & Cosmetics division again showed sustained vigour with sales rising 17 per cent in 2022.
Christian Dior enjoyed a “remarkable performance” driven by the Sauvage, Miss Dior and J’adore fragrances and Dior Addict makeup.
Guerlain was also on a roll, thanks to the continued success of the Abeille Royale and Aqua Allegoria skincare and fragrance franchises.
Fenty Beauty was another standout, doubling sales through new launches and expanded distribution over the year. Parfums Givenchy also reported continued sales momentum.
Tiffany & Co experienced a record year as one of the pillars of LVMH’s Watches & Jewellery division, which recorded an 18 per cent spike in revenues. Other high-end brands which boosted profits included Bulgari, Tag Heuer, Chaumet and Hublot.
Selective Retailing, including Sephora, was another bullet performer with double digit growth of 26 per cent in 2022.
Bernard Arnault, chairman and CEO of LVMH and the world’s richest person, noted that the company’s performance in 2022 illustrated the exceptional appeal of its Maisons and their ability to create desire during a year affected by economic and geopolitical challenges.
“The group once again recorded significant growth in revenue and earnings. Our growth strategy, based on the complementary nature of our activities, as well as their georgraphic diversity, encourages innovation and the quality of our creations and the excellence of our distribution.
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