LVMH Revenues Increase in Q3 Despite Growing Recession Concerns

PARIS — It was smooth sailing in the third quarter for LVMH Moët Hennessy Louis Vuitton despite growing concerns about a global recession.

The luxury conglomerate said its “growth continues at the same pace.” Revenues soared 19% in the third quarter, as Europe, the U.S. and Japan benefited from the conjunction of strong local demand and the return of foreign visitors.

The group’s sales in Asia also showed growth, aided by the partial lifting of COVID-19 related restrictions.

Total revenues in the three months to Sept. 30 totaled 19.76 billion euros, well exceeding the Bloomberg consensus estimate of 18.83 billion euros. That represented a rise of 19% on a like-for-like basis versus the same period last year.

For the third quarter, LVMH reported double-digit organic growth in all divisions.

In its key fashion and leather goods division, organic sales grew 22% during the period, beating the forecast 16.2% consensus, while sales of watches and jewelry were up 16%, versus a consensus of 14.3%.

Although perfumes and cosmetics posted a 10% increase, and the selective retailing division recorded a 15% growth, both were below analysts’ forecast.

Reporting third-quarter results after the close of the Paris Bourse, LVMH said its sales for the first nine months of 2022 were 56.5 billion euros, a 28% year-over-year leap.

Growth was driven by the fashion and leather goods division, which saw 24% organic growth, with Louis Vuitton continuing to shine and Celine and Loewe experiencing “very strong growth.” Loro Piana also maintained “good momentum.”

Watches and jewelry rose 16% in organic terms, buoyed by Tiffany & Co.’s “strong momentum” in the U.S.

Selective retailing leapt 20% during the first nine months of the year. Sephora had an “excellent performance,” with a strong rebound of its stores’ activity. Meanwhile, its travel-retail counterpart DFS continued to suffer from persistent difficulties due to continuing sanitary restrictions in Asia.

For the last quarter of 2022, the luxury behemoth expressed confidence that its current growth trend will continue, despite the uncertain economic and geopolitical context.

Kering and Hermès International are due to report third-quarter results on Oct. 20. Meanwhile, Compagnie Financière Richemont will release its first-half results on Nov. 11.

This story was reported by WWD and originally appeared on WWD.com.

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