LVMH shares surged after the luxury giant bounced back from the depths of the pandemic with record sales as customers snapped up items ranging from Christian Dior couture to Hennessy cognac.
Revenue last year totalled €64.2 billion, the Paris-based company said, topping the previous record set in 2019, before Covid-19 lockdowns closed stores and kept shoppers stuck at home. Analysts had expected revenue of €62.2 billion.
The performance of the luxury giant, led by billionaire Bernard Arnault, exemplifies the V-shaped recovery experienced by much of the industry as wealthy customers rushed back to boutiques. The pace of the rebound was underpinned by recovering economies and soaring asset prices.
As the dominant purveyor of luxury goods, LVMH benefited from its range of products, from $1,000 Louis Vuitton Tattoo sneaker boots to Tiffany engagement rings.
Organic revenue for its main fashion and leather goods division, which includes Celine and Loewe on top of Louis Vuitton, jumped 42 per cent from 2019 levels.
During the virtual presentation before analysts and reporters, LVMH chief executive Bernard Arnault warned that international travel may not return before next year or 2024.
Tiffany, which was acquired a year ago, had a “remarkable” performance despite the brand’s flagship store on New York’s Fifth Avenue being closed for refurbishment, Arnault said. Mr Arnault said the group will be “reasonable,” and “respect” its customers when it comes to potential product price increases. But he acknowledged some of the group’s products have pricing power. If needed, LVMH can “react” to inflation pressures, Arnault said. – Bloomberg