The holiday season has been a strong selling season for the world’s largest luxury group.
LVMH reported that they had a second consecutive record year of revenue and profits, despite high living costs and geopolitical tensions.
Sales reached nearly $25bn (£19.9). This is a 9% increase over the previous three months.
Strong growth was seen in the US, Japan and Europe which more than made up for any losses in China from Covid lockdowns.
LVMH in Asia saw a 20% decline in its growth during the first nine months of the year, as the second-largest economy in the world doubled down on its zero Covid policy.
Bernard Arnault, chief executive of LVMH, said that he was cautiously optimistic about the “green shoots” in China.
At the earnings presentation, Mr Arnault stated that “we have every reason to feel confident, indeed optimistic about China.”
He pointed out their Macau stores to indicate what was possible. He said, “Business is back. The Chinese are buying.”
LVMH brands include Tiffany’s and Christian Dior as well as Sephora, Hennessey, Moet, Hennessey, and Sephora.
Its designer label Louis Vuitton did extremely well. For the first time, its revenue exceeded $21.7bn. Recently, the label launched a new collaboration to Yayoi Kusama (Japan contemporary artist), who is well-known for her colourful dots art.
Analysts view LVMH’s earnings as a benchmark in the luxury market.
Bain and Company stated that they expect a rise in personal luxury goods spending overall.
According to a report by the consulting firm, “The personal luxury market is expected to experience further growth of at minimum 3-8% next year, even with a downturn global economic conditions.”
LVMH made some changes to its leadership team earlier this month. His daughter was appointed head of Dior fashion house by Mr Arnault. He is one of the richest men in the world. Pietro Beccari, 47, was replaced by Delphine Arnault (47).
Each of the five children of Mr Arnault hold managerial positions in brands within the group.