Fashion labels boost Q1 revenue growth at LVMH
LVMH Moët Hennessy Louis Vuitton recorded revenue of 18 billion euros in the first quarter of 2022, up 29 percent compared to the same period in 2021. The company’s organic revenue growth was 23 percent.
The company said in a release that LVMH 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. All business groups achieved double-digit revenue growth, except for wines & spirits, which continued to see supply constraints. The United States and Europe also achieved double-digit revenue growth; Asia continued to grow over the quarter despite the impact of a tightening of health restrictions in China in March.
LVMH posts revenue growth across segments
The group’s fashion & leather goods business group recorded organic revenue growth of 30 percent and reported revenue increase of 35 percent in the first quarter to 9,123 million euros. The core brands under the company’s portfolio including Louis Vuitton, Christian Dior, Fendi, Celine as well as Loro Piana, Loewe with J.W. Anderson, and Marc Jacobs all witnessed good growth during the quarter under review.
In perfumes & cosmetics, organic revenue growth was 17 percent and reported revenue growth was 23 percent to 1,905 million euros compared to the same period of 2021. The company added that this business group enjoyed excellent momentum thanks to sustained growth in perfume and makeup, particularly in the United States.
In the first quarter, the watches & jewelry business group recorded organic revenue growth of 19 percent and reported revenue growth of 24 percent to 2,338 million euros. Tiffany & Co. reported a positive start to the year, still driven by strong growth in the United States. All of LVMH's watchmaking maisons continued to see strong momentum and unveiled numerous new products at the Watches & Wonders Exhibition, with watch innovations from Tag Heuer, Hublot and Zenith.
In selective retailing, organic revenue growth was 24 percent and reported revenue growth was 30 percent to 3,040 million euros. Sephora witnessed solid performance in the quarter with a strong rebound in the activity in its own store network, which had been partly closed at the beginning of 2021. Momentum was particularly strong in North America, France and the Middle East, driven notably by perfume. DFS’s revenue rose in the quarter but at a lower level due to the persistent weakness of international travel.