Financial success continues at a rapid pace for Louis Vuitton Moet Hennessey (LVMH), the parent company of Louis Vuitton, Dior, and many more. LVMH as a whole improved revenues 11% for the first nine months of 2021 as compared to the same period of 2019. Needless to say, the year over year 2020/2021 comparison was far more extreme, evidencing the devastating financial effect of the pandemic during the first half of 2020.
The real winner, however, is LVMH’s largest group – Fashion & Leather Goods. As we’ve written many times, consumers want their handbags and ready-to-wear, pandemic be damned. In fact, despite a huge drop in (and, indeed, inability to) travel and shop internationally, revenues for this group continue to rise.
Specifically, the first nine months of 2021 showed 38% revenue growth over 2019 (57% over 2020), which is consistent over the year. Growth in Q1, Q2, and Q3, respectively was up 37%, 40%, and 38%, as compared to the same quarters of 2019.
Geographically, Asia (not including Japan) and the Americas remain the biggest drivers of growth. LVMH Q3 revenues in Asia rose 29% and the Americas 23% as compared to 2019. Europe continues to be a drag on the financials.
With limited travel, these luxury consumers clearly are shopping at home. And, despite perhaps premonitions to the contrary, Louis Vuitton can find success at home. Or at least with shoppers at home. Even if home isn’t France.