The world’s appetite for luxury products continues to surge. LVMH, the world’s largest luxury goods group, posted a 17 per cent increase in revenues for Q1 2023 to US$23.075 ($34.26) billion.

Fashion and Leathergoods sales exceeded US$11.79 billion to take the top position as usual among the multinational’s core divisions. But the Selective Retailing division, including Sephora and DFS, saw revenues spike 30 per cent over the first quarter to exceed US$4.35 billion. The world’s largest speciality beauty chain scored particularly well in the US, Europe and the Middle East and its first store in the UK following its recent return to the British market enjoyed “an excellent start”.

The Perfumes & Cosmetics division also saw an 11 per cent hike in revenues in Q1 to US$2.32 billion. Christian Dior continued its run as a bullet performer, mainly due to its pillar fragrances Sauvage, J’adore and Miss Dior. Makeup and skincare sales also increased.

Parfums Givenchy debuted its new fragrance – Gentleman Society – in the first quarter, while Benefit Cosmetics successfully expanded its Porefessional franchise. Fenty Beauty received a major shot in the arm from Rihanna‘s appearance at the US Super Bowl in February. During her performance, the superstar turned product placement into an art form when she touched up her makeup with Fenty Beauty’s Invisimatte Instant Setting & Blotting Powder, increasing the brand’s searches by 833 per cent.

Travel retail sales rebounded strongly with the relaxing of restrictions linked to the Covid-19 pandemic, notably in China.

Perfume & Cosmetics have become an even stronger focus for LVMH going forward. As reported by Retail Beauty in March, the luxury goods giant appointed Stephane Rinderknech as the new CEO of the division to re-energise its efforts in the category. Prior to joining LVMH, Rinderknech had a distinguished 22 year career at L’Oréal and was CEO of the multinational in both the US and China.

Bloomberg, the prestigious financial media company, also recently reported that Bernard Arnault, the founder, Chairman and CEO of LVMH,  has become the third billionaire to achieve a net worth in excess of US$200 billion. The duo already in this rarefied “club” are Elon Musk and Amazon’s Jeff Bezos. With net worth of US$201.1 billion, Arnault is the first person outside the US to reach this stratospheric milestone.

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