Revenue at LVMH Moët Hennessy Louis Vuitton’s Selective Retailing division increased 26% in 2022 year-on-year on a reported basis (+17% organic) to total €14,852 million/$17,570 million.

Profit from recurring operations jumped 48% to €788 million.

The French luxury conglomerate posted revenue of €79,184m in 2022 with profit from recurring operations of €21,055 million, both up 23% on a reported basis.

In a statement, LVMH notes that DFS’ performance was hampered by the health situation in China.

“The flagship destinations of Hong Kong and Macau particularly suffered as a result of the suspension of domestic travel and the complete absence of tourists but just reopened in January.”

However, it pointed to the ‘remarkable rebound’ of the Sephora business and strong growth and innovation from Le Bon Marché.

In an earning call yesterday, Bernard Arnault, Chairman and CEO of LVMH, updated that while the situation for DFS has proven challenging, there remains ‘green shoots’ of recovery in China following its easing of restrictions this month.

“Macau has started again; in our stores in Macau, business is back, the Chinese are buying,” he explained.

Travel comeback strengthens Europe, US and Japan

Europe, the United States and Japan benefitted from the recovery of international travel and strong demand from local customers, while Asia produced a stable performance over the year due as a result of the health situation in China.

The Group’s share of net profit increased 17% to €14,084 million versus 2021, with operating free cash flow surpassing €10 billion.

Operating investments registered nearly €5 billion, mainly focused around the expansion store networks, development of production facilities and employment.

 

Business entities welcomed market share gains worldwide, with notable performances in Fashion & Leather Goods from the likes of Louis Vuitton – which surpassed €20 billion for the first time – together with Christian Dior, Celine, Fendi, Loro Piana, Loewe and Marc Jacobs.

Momentum continued for Dior’s Sauvage fragrance, boosting the Perfumes & Cosmetics business, while LVMH referenced ‘sustained creative momentum’ across Watches & Jewelry Maisons, in particular Tiffany, Bulgari and TAG Heuer.

Arnault: Confident but vigilant

Globally in 2022, LVMH hired 39,000 young people of which 15,000 were in France – making the group the leading private recruiter in the country,

In a statement, Arnault added: “Our performance in 2022 illustrates the exceptional appeal of our Maisons and their ability to create desire during a year affected by economic and geopolitical challenges. The Group once again recorded significant growth in revenue and earnings.

“Our growth strategy, based on the complementary nature of our activities, as well as their geographic diversity, encourages innovation and the quality of our creations, the excellence of their distribution, and adds a cultural and historical dimension thanks to the heritage of our Maisons.

“This was showcased during our hugely successful LVMH Journées Particulières, when we opened our doors to all in fifteen countries in 2022 and saw a record number of visitors come to learn about the know-how of our artisans. We approach 2023 with confidence but remain vigilant due to current uncertainties.

“We count on the desirability of our Maisons and the agility of our teams to further strengthen our lead in the global luxury market and support France’s prestige throughout the world.”

Looking ahead, LVMH confirmed that 2023 has begun positively despite the uncertain macroeconomic and geopolitical environment.

It retains its confidence in continued growth this year in line with strategic brand development, innovation and investment.

“LVMH enters 2023 with confidence and once again, sets an objective of reinforcing its global leadership position in luxury goods,” added the Group.