LVMH continues to ride cash-splurging wave for luxury goods as revenue jumps a third
LVMH has continued to ride the pandemic-era wave of consumers splurging extra cash on luxury goods, as opposed to jetting away overseas.
Revenue jumped nearly a third to €18bn (£15bn) in the first quarter of this year, in comparison with €13.9bn in 2021 – with fashion and leather products leading the way.
Such goods hit record growth levels last year, with annual revenue rocketing more than 50 per cent in comparison with 2019.
The luxury retailer enjoyed a “good start” to the year, it said in its latest trading update, with all business groups hitting double digit growth, except the group’s alcohol business which had suffered supply constraints.
The wine and spirits division, which sells pricier liquors such as Hennessy cognac and Belvadere vodka, grew by eight per cent in the three-month period, pulling in some €1.6bn (£1.3bn).
As Covid-19 restrictions blanketed the globe, consumers instead dished out money that would typically be used for travel on other high-value items such as watches – a trend also seen by London-listed Watches of Switzerland.
Revenue climbed around 25 per cent for LVMH’s watches and jewellery business group, which includes Tiffany & Co., as businesses unveil new products.