Sharp Chinese rebound powers LVMH sales growth in second quarter
By Mimosa Spencer
PARIS (Reuters) -Sales at the world's top luxury group LVMH rose by 17% in the second quarter, with a sharp rebound in China helping to offset a decline in the United States, where inflation and economic turbulence have dented demand for high-end goods.
The French company, whose 75 brands include fashion labels Louis Vuitton and Dior as well as Hennessy cognac and U.S. jeweller Tiffany, said on Tuesday it made 21.2 billion euros ($23.4 billion) of sales in the three months to the end of June.
The 17% increase at constant exchange rates was a touch better than analyst expectations for 16% growth, according to a Visible Alpha consensus.
LVMH's leather goods division, home to Vuitton and Dior, grew revenues by 21%, also just above the expected 20% increase.
The narrow beat for a company that routinely delivers results ahead of expectations, and is regarded as a bellwether for the luxury industry, led some analysts to say the sector was moving towards a more steady path after years of stellar growth as consumer demand normalises after the post-pandemic euphoria.
Finance chief Jean-Jacques Guiony told reporters he was «very satisfied» with the rebound in China, which makes up the bulk of Asian sales. The region — excluding Japan — posted 34% growth compared to last year, when strict COVID-19 restrictions hit sales and emptied stores in China.
But he refrained from giving an outlook for the rest of the year.
The pace of the Chinese recovery and future growth prospects have become a major talking point among investors after lacklustre economic data and cautious comments from Cartier-owner Richemont weighed on luxury shares last week.
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