Louis Vuitton Moet Hennessey (LVMH), the parent company of fashion houses Louis Vuitton and Christian Dior, among others, had a really good summer and fall. Despite economic reports of doom and gloom, it beat financial expectations – again.
Looking at the third quarter of 2022 alone, organic revenue growth was 19%. For 2022 to date (nine months), revenue rose 28% as compared to the same period in 2021. The Fashion and Leather Goods group was the highest performing sector, no doubt buoying LVMH’s overall results. It spiked 31% (reported revenue) and 24% (organic growth) over the first nine months of 2021.
LVMH posits that growth in Europe, the United States, and Japan benefited from solid demand and resumed international travel. Frankly, as we’ve written repeatedly, American travelers flooded Europe this summer, shopping and spending taking advantage of the strong US dollar over the Euro. Moreover, in Asia, with reduced health restrictions (in some areas), consumers resumed purchasing.
So far so good, right? But if you look a bit closer at the Fashion and Leather Good figures, revenues are down off the highs of Q1 2022. In the first quarter, organic revenues climbed 30%. The second quarter lift was only 19%, and now 24% in the third. It may mean something, or nothing, but it is interesting that growth has slowed since Q1.
Updated: October 11th, 2022