Chinese lockdowns, inflation and the war in Ukraine can not stop LVMH: the French luxury group continues its momentum and again publishes better-than-expected figures. Still, it warns for future uncertainty.
Double figures
LVMH says it had “a good start to the year against a backdrop of continued disruption from the health crisis and marked by the dramatic events in Ukraine.” Quarterly sales were 18 billion euros, up 29 % compared to the first quarter of last year. All divisions grew in double digits except wine and spirits, who had issues with supply problems. The strongest grower was the fashion and leather goods division, with sales growth of up to 35 %.
Whether the luxury group will be able to maintain this rate of growth during the rest of the year is an open question. In the current geopolitical context and in light of the ongoing effects of the pandemic, LVMH says it remains “both vigilant and confident”. Chief financial officer Jean-Jacques Guiony warns that demand in China is now declining due to strict lockdowns. At the same time, he expects sales to recover quickly once the situation returns to normal.
