So far, so good, for Louis Vuitton in 2022. Its parent company LVMH just announced strong first quarter 2022 financial results. For the conglomerate, revenues are up 29% as compared to the same period in 2021, with organic revenue growth rising 23%. All business groups showed double digit organic revenue growth with the exception of Wine & Spirits.
Considered against the backdrop of the continuing global health crisis and war in Ukraine, it is even more impressive. As stated by the company:
The LVMH Group is closely monitoring developments in Ukraine and the region. Its first priority was to ensure the safety of its employees in Ukraine and to provide them with all the necessary financial and operational assistance.
You may recall that Louis Vuitton closed boutiques in Russia in light of its actions in Ukraine. It also pledged €1 million to UNICEF to help children and families affected by actions in Ukraine.
LVMH’s largest product group also is its most successful this quarter. The Fashion and Leather Goods Group – which includes standouts like Louis Vuitton and Dior – displayed increased organic revenues of 30% for 2022 Q1. Data is not broken out by brand but LVMH extols the success of these two.
Geographically, the United States, Europe, and Japan displayed double digit revenue growth. Meanwhile, although revenue in China revenue, it was less than in prior periods which the Company attributed to repeated Covid restrictions.
As for the future, LVMH says:
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. 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.
LVMH relies on the talent and motivation of its teams, the diversity of its businesses and the geographical balance of its revenues to further strengthen its global leadership position in luxury goods in 2022.
Is anyone surprised about Louis Vuitton’s financial fortunes? Have you been buying? If so, tell us what!