No signs of decline for luxury goods yet, if Louis Vuitton Moët Hennessey’s (LVMH) financial results for the first half of 2022 are any indication. Rather than being the proverbial ‘canary in the coal mine’ predicting retrenchment for the sector, LVMH beat expectations. Revenues for January through June 2022 grew 28% over the same period in 2021 (21% in organic revenue). Second quarter revenue rose 27% (19% in organic revenue).
LVMH’s Fashion & Leather Goods business group, its largest section which includes Louis Vuitton and Dior, among others, experienced a 31% increase in revenues (24% in organic revenue). Although LVMH does not delineate financials by brand, the company noted “[r]emarkable performance by the Fashion & Leather Good business group, particularly Louis Vuitton, Christian Dior, Fendi, Celine, Loro Piana and Loewe, which gained market share across the board and achieved new record highs for profitability.” Perhaps notably the weight of this group on company results rose one point to 49%.
It’s all the more impressive given that sales in China were not a significant part of the profitable equation. Sales in Europe and the United States rose sharply. That’s probably no surprise to anyone shopping who witnessed lines outside boutiques in those geographic areas.
Asia (not including Japan), on the other hand, saw slower growth primarily due to health restrictions in China. In fact, comparing the 2021 results for the same period shows the decline in importance of Asia sales from 38% to now 32%.