LVMH Q1 results bolstered by ‘robust’ demand from international travellers

By Kristiane Sherry |

A recent Hennessy x Kim Jones activation at DFS T Galleria by DFS, Macau

Luxury goods conglomerate and DFS Group parent LVMH has released strong first-quarter results, with total sales climbing 17% on a reported basis to reach €21 billion/US$22.9bn.

LVMH hailed the results as an “excellent” start to the year, with the figure buoyed by “robust demand” from international travellers. 

The company’s Selective Retailing division, which comprises DFS Group, Sephora and Le Bon Marché, saw its Q1 sales soar 28% to hit €3.9bn/US$4.3bn.

LVMH noted a “rapid rebound” for DFS Group following the reopening of China’s borders following the Covid-19 pandemic.

It also welcomed the “progressive” return of tourists to Hong Kong and Macao, and the opening of its first concession in the domestic terminal 3A at Chongqing Jiangbei Airport.

However LVMH confirmed that despite the clear rebound, DFS sales were still below 2019 levels.

LVMH’s Selective Retailing division posted 28% growth in 2023 Q1

LVMH Q1 category performance

The Wine & Spirits business group benefited from 3% sales gains to reach €1.6bn/US$1.7bn, largely driven by the wine business. Champagne posted “strong revenue growth”, with Chandon “performing well”

Hennessy Cognac showed “resilience” in the US, while Glenmorangie single malt Scotch whisky and Belvedere vodka posted “good growth” despite organic spirits revenues tumbling by 5%. 

LVMH Q1 2023 revenue by business unit

Fashion & Leathergoods reported an 18% surge with sales reaching €10.7bn/US$11.7bn. Louis Vuitton enjoyed an “excellent” start to the year, with Celine posting “very strong growth”.

Perfumes & Cosmetics delivered an 11% increase in revenue, reaching €2.1bn/US$2.3bn. Christian Dior posted a “remarkable” performance, while Fenty Beauty was propelled by Rihanna’s Super Bowl performance. 

Watches & Jewellery sales also grew 11%, reaching €2.5bn.US$2.7bn. Tiffany, Bulgari, and the LVMH watchmaking mansions were all name-checked for “excellent” progress. 

Europe and Japan “excellent”; Asia rebounds

Europe (+14%) and Japan (+7%) both saw “robust” demand from customers, with LVMH’s native France also reporting 7% gains.

The US gave a “steady” performance, with Q1 growth reaching 23%, compared to 24% in Q1 2022. 

Asia soared by 36% as health restrictions lifted and travel returned. 

Asia was the star performer for LVMH in Q1

“In an uncertain geopolitical and economic context, LVMH remains both vigilant and confident at the start of the year,” the financial statement reads. 

“The Group will continue to pursue its strategy focused on the development of its brands, driven by a sustained policy of innovation and investment as well as by a constant quest for quality in its products, their desirability and their distribution.”

In January, LVMH posted strong full-year 2022 results, with profit from recurring operations jumping 48% to €788 million/US$861m.

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