As Covid measures in China are eased, luxury shoppers are flocking to the stores again. After record sales last year, LVMH is already seeing the first signs of another excellent year.
“Stores full again”
LVMH has had a record year, for the second time in a row, as sales rose 23 % to 79.2 billion euros. Profits climbed even 17 % to 14 billion euros – and that is even though the last quarter was a setback as a new wave of Covid-19 kept key Chinese consumers off the high streets.
Now that that is over and the country has relaxed measures, LVMH is seeing shoppers returning in droves. The company had a special mention for the “spectacular change” in Macau. If the whole year keeps up this trend, it will be an excellent year, CEO Bernard Arnault thinks.
Back to Europe
CFO Jean-Jacques Guiony adds some nuance, though: Chinese sales are still far from pre-Covid levels. A lot of luxury houses, including LVMH, are still counting on Chinese consumers to catch up this summer and travel back to Europe.
It is not all China that shines though: last year, the luxury group did well all over the world. There was significant growth in all parts of the business, while market share increased globally. Growth was particularly strong in Europe, Japan and the United States. Flagship brand Louis Vuitton exceeded twenty billion euros in sales for the first time.