Retail in Asia


LVMH maintains strong growth in the first nine months

Leading luxury goods group LVMH Moët Hennessy Louis Vuitton recorded revenue of EUR 56.5 billion in the first nine months of 2022, up by 28 percent compared to the same period in 2021. Organic revenue growth year-on-year was +20 percent. In the third quarter, organic revenue growth was +19 percent, in line with the trends in the first half of the year.

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By region, Europe, the USA and Japan benefited from “the solid demand of local customers and the recovery in international travel”, said the group.

Asia (including China) saw a lower level of growth over the first nine months, though growth in the latest quarter accelerated due to the partial easing of health restrictions, LVMH added.

In Selective Retailing, revenue growth was +30 percent (+20 percent in organic) in the first nine months. Within this, DFS (co-owned by LVMH and co-founder Robert Miller) was affected by the persistent lack of travel, owing to ongoing health restrictions in Asia, noted the group.

The Wines & Spirits business group recorded revenue growth of +23 percent over the first nine months of 2022 (+14 percent organic). LVMH’s Champagne Maisons posted strong momentum, which increased pressure on supplies. Growth was particularly strong in Europe, the USA and Japan.

Source: The Moodie Davitt Report

Hennessy Cognac grew, aided by a firm policy of price increases across all regions, which LVMH said “offset the effects of the logistical disruptions in the United States and the impact of health restrictions in China”. Moët Hennessy strengthened its global portfolio of wines with the acquisition of the Joseph Phelps vineyard in Napa Valley, California.

The Fashion & Leather Goods business group recorded revenue growth of +31 percent in the first nine months (+24 percent organic). Louis Vuitton shone again, noted LVMH, with new product lines well received. Christian Dior continued to achieve “remarkable growth”, Celine saw strong growth through Hedi Slimane’s creations, as did Loewe, driven by the creativity of J.W. Anderson. Loro Piana and Fendi were other brands to perform well.

With revenue growth of +19 percent (+12 percent organic) over the first nine months, the Perfumes & Cosmetics business group maintained its highly selective distribution strategy. Parfums Christian Dior enjoyed “a remarkable performance”, said the group, strengthening its lead in key markets.

Perfumes grew sharply due to the continued success of Sauvage, Miss Dior and J’adore, further strengthened by its latest creation Parfum d’Eau. Dior Addict in makeup and Prestige in skincare also contributed to the Maison’s rapid growth. Guerlain continued to grow, due in large part to the vitality of its Abeille Royale skincare line, its Aqua Allegoria collection and perfume line l’Art et la Matière. Parfums Givenchy performed well, driven by its fragrances.

LVMH brand Tiffany & Co made its Chinese mainland airport debut on 1 October at Shanghai Hongqiao T2 domestic (pictured) as part of a flurry of high-profile boutique openings at the location.

The Watches & Jewelry business group recorded revenue growth of +23 percent (+16 percent organic) in the first nine months. Tiffany & Co. was driven by strong momentum in the USA. Bulgari continued to strengthen its collections with new high jewellery and watch lines.

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Looking ahead. LVMH commented, “Against an uncertain geopolitical and economic backdrop, the group is confident in the continuation of current growth and will maintain a policy of cost control and selective investment.”

(Source: Moodie Davitt Report)