LVMH continues to grow in the third quarter
The leading luxury group has published its figures for the third quarter of 2022 and announced organic sales growth of 19%, a performance in line with the trends of the first half of the year.
By Cristina D’Agostino12 octobre 2022
Despite an uncertain geopolitical and economic context, LVMH has continued to achieve organic sales growth (+19%) at the same rate as the first half of 2022 (+21%), and has announced sales of 19.8 billion euros from July to September 2022. The group has stated that it intends to maintain a policy of cost control and selective investments. The Fashion and Leather Goods sector remains the segment that is driving the group's growth with 22% of sales and a turnover of 9.7 billion euros. Céline experienced very strong growth, as did Loewe, driven by the strong creativity of J.W. Anderson.
The Watches and Jewellery sector is also experiencing good momentum as the summer period saw the group's sales increase by +16% to 2.7 billion euros. During the presentation of the results on Tuesday 11 October at 6pm, it was highlighted that the watch segment performed better than jewellery, and that the Bulgari brand was the best performing brand in the third quarter of 2022, even though Tiffany continues to record double-digit sales growth.
Another big winner in the third quarter was Wine and Spirits, which grew by 14% to €1.9 billion, in line with the first half of 2022 (+14% to €3.3 billion), but down from the second quarter, which saw sales jump by 30%.
As for the growth markets, Europe with +36% remains the undisputed champion of the recovery since the beginning of the year for the LVMH group, compared to the same period in 2021. Over the first nine months of 2022, Europe accounted for +43% of organic sales, followed by Japan with +30% of sales from July to September 2022 and +32% from January to September 2022. The United States slows down its growth in the third quarter with +11% of sales compared to the same period in 2021, whereas the first quarter showed +26% and the second quarter 22% of sales. In Asia excluding Japan, the third quarter was again positive at +6% after a drop in the second quarter to -8%, mainly due to the gradual relaxation of anti-Covid measures.
Overall, currency effects in Europe have recently resulted in products being cheaper in Europe than in the US when converted into dollars. To the question of a possible price adjustment, the LVMH group answers that it will not act at short notice.
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