French luxury conglomerate LVMH Moët Hennessy Louis Vuitton said on 12th April that its total sales in first quarter 2022 surged 29 percent to 18 billion euros (US$19.54 billion), despite overall revenue growth slowing in Asia, the group’s largest market by revenue.
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The Parisian company said total revenues in Asia excluding Japan witnessed an 8 percent increase, a considerable slowdown after a staggering 86 percent growth in the first quarter of 2021, hurt by the tightening of health restrictions in China in March.
Asia, LVMH’s largest market by revenue, still accounted for 37 percent of LVMH’s total revenues in the quarter, down from 41 percent in the same quarter last year.
During the same quarter, Japan recovered from its weaker sales growth in 2021, recording a sales uptick of 30 percent, compared to 8 percent for the same quarter last year – the market remaining accountable for 7 percent of overall sales at the company during the three months.
Elsewhere, Europe and the U.S. recorded double-digit growth, LVMH said in a press release.
By division, LVMH’s Wines & Spirits business recorded organic revenue growth of 2 percent in the first quarter, driven by sales of champagne, with volumes rising sharply, particularly in Europe and Japan.
Fashion & Leather Goods recorded organic revenue growth of 30 percent, after strong gains at Dior and Celine, while Louis Vuitton “is never very far from the average for the division,” LVMH Chief Financial Officer Jean-Jacques Guiony told analysts in a call.
In Perfumes & Cosmetics, organic revenue growth was 17 percent, while the Watches & Jewellery business group recorded organic revenue growth of 19 percent compared to the same period of 2021, held up by jewellery houses Tiffany & Co. and Bulgari.
Finally, Selective Retailing achieved revenue growth of 24 percent, with beauty chain Sephora witnessing a strong rebound in activity in its own store network, which had been partly closed at the beginning of 2021, LVMH added.
“In the current geopolitical context and in light of the ongoing impact of the pandemic, LVMH remains both vigilant and confident at the beginning of this year,” said the company in a statement.
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“The group will continue to pursue its strategy focused on the development of its brands, driven by strong innovation and investment as well as a constant quest for quality in its products and their distribution.”