PARIS—LVMH Moët Hennessy Louis Vuitton SE said Tuesday its third-quarter revenue rose 27% as U.S. tourists spent freely in Paris and other European capitals and Covid-19-related disruptions eased in China.
posted revenue of €19.76 billion ($19.26 billion), beating expectations. The conglomerate’s fashion and leather-goods division—which accounts for almost half of its revenue—posted a 27% increase in sales to €9.69 billion for the three months ended in September.
LVMH said it was confident in the continuation of its current sales growth, despite what it described as an uncertain geopolitical and economic backdrop. The company said it would maintain its cost controls and be selective with investments.
The company’s overall organic-revenue growth, which strips out the effects of currency, came in at 19%. LVMH doesn’t publish quarterly profit figures.
Luxury companies, and LVMH in particular, are riding a postpandemic boom that so far has shown little sign of easing despite various challenges to the global economy, such as rising inflation, supply-chain issues and the war in Ukraine. While these problems are causing headaches for mainstream retailers whose customers are feeling the squeeze, the wealthy consumer base to which luxury brands cater has so far continued to spend freely.
LVMH, whose brand stable includes
Louis Vuitton and Tiffany, reported a double-digit-percentage rise in sales at all its divisions for the third quarter on an organic basis. Its divisions include watches and jewelry, perfumes and cosmetics, wines and spirits, and selective retailing.
Overall sales in Europe rose 36% on an organic basis, while U.S. revenue rose 11%, slower than previous quarters, the company said. However,
Jean Jacques Guiony,
LVMH’s chief financial officer, said business had shifted to Europe from the U.S. in recent months because Americans were taking advantage of the strong dollar to splurge in Europe.
Asia grew 6% on an organic basis, an improvement on the two previous quarters when sales were pressured by strict lockdowns in Shanghai and other cities in China—the world’s largest luxury market.
LVMH is the first luxury group to report results for the third-quarter. Hermès International and Gucci-owner
will report sales for the period on Oct. 20.
Write to Nick Kostov at [email protected]
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