A bag made in the Louis Vuitton workshop
by Mimosa Spencer and Silvia Aloisi
(Reuters) – LVMH reported better-than-expected third-quarter sales on Tuesday as wealthy customers flocked to its fashion brands and Americans took advantage of the strong dollar to visit stores in Europe.
The world’s largest luxury group, which has also benefited from an improvement in its activities in China thanks to the relaxation of anti-COVID-19 restrictions, warned however that sales of Tiffany jewelry products are slowing down in the US
So far, demand for luxury goods has proven resilient to inflation, as wealthy consumers have been less affected by the cost-of-living crisis, prompting the less fortunate to cut back on discretionary spending.
“The relief of coming out of the pandemic alive has overshadowed any bad news. Consumers who can are adopting a ‘carpe diem’ attitude: Nobody wants to be the richest person in the graveyard,” said Luca Solca, an analyst at Bernstein.
The quarterly turnover of the owner of Louis Vuitton and Dior amounted to €19.76 billion, representing organic growth of 19% in one year, while the Visible Alpha consensus cited by UBS expected growth of 13%.
Sales in Europe, the United States and Japan have risen sharply since the beginning of the year, due to strong demand from local customers and the resumption of international travel, the group said in a press release.
“In the field of fashion and leather goods, part of the activity has moved from the United States to Europe, and American citizens benefit from the strength of the dollar,” LVMH CFO Jean-Jacques Guiony said on Tuesday. . , to analysts during a conference call.
“Asia (including China) saw less progress in the first nine months of 2022, although the latest quarter improved thanks to the partial relaxation of health restrictions,” the group said.
The fashion and leather goods division, the largest in the group, registered a growth of 22% compared to the same period in 2021.
The launch of LVMH, which also owns Sephora, Bulgari and Tiffany, marks the start of earnings season for the luxury sector.
Hermès and Kering, which owns Gucci, will publish their quarterly sales on October 20.
(Report Mimosa Spencer and Silvia Aloisi, French version Diana Mandiá, edited by Sophie Louet)