Luxury group LVMH records 23 percent growth in revenue and profit
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Management
The company said in a statement that all business groups under its portfolio achieved significant organic revenue growth. Fashion & leather goods reported organic revenue growth of 20 percent.
Profit from recurring operations stood at 21.1 billion euros for 2022, up 23 percent, while operating margin remained at the same level as 2021. Group share of net profit was 14.1 billion euros, up 17 percent compared to 2021.
Commenting on the group’s annual performance, Bernard Arnault, chairman and CEO of LVMH, said: “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. We approach 2023 with confidence but remain vigilant due to current uncertainties.”
Highlights of LVMH trading results in 2022
The company added that 2022 was a record year despite the geopolitical and economic situation with LVMH witnessing significant revenue growth for all business groups and market share gains worldwide.
The group specifically saw strong growth in business in Europe, Japan and the United States, and a remarkable performance by the fashion & leather goods business group, notably Louis Vuitton, Christian Dior, Celine, Fendi, Loro Piana, Loewe and Marc Jacobs, which are gaining market share globally and reaching record levels of revenue and earnings. Louis Vuitton revenue surpassed 20 billion euros, for the first time.
LVMH also recorded strong growth in perfumes with the continued global success of Dior’s Sauvage and sustained creative momentum for all our watches & jewelry maisons, in particular Tiffany, Bulgari and Tag Heuer. LVMH posted rebound in performance for Sephora.
LVMH posts strong trading at the fashion & leather goods segment
The group’s fashion & leather goods business group recorded revenue growth of 25 percent in 2022 or 20 percent on an organic basis, while profit from recurring operations was up 22 percent.
Louis Vuitton, the company said, had an excellent year, again driven by its creativity, the quality of its products and its strong ties with art and culture. The women's ready-to-wear fashion shows created by Nicolas Ghesquière were well-received. Many new products were unveiled in leather goods, jewelry and watches.
Christian Dior continued its remarkable growth trajectory across all its product lines. After three years of renovations, the Maison’s historic store at 30 avenue Montaigne, which reopened in Paris in early 2022, enjoyed success, offering a new experience of the highest refinement.
Celine experienced very strong growth thanks to the success of Hedi Slimane's creations and his extremely modern and precise vision, as did Loewe, driven by the strong creativity of J.W. Anderson. Fendi celebrated the 25th anniversary of its iconic Baguette bag in New York. Loro Piana, Rimowa and Marc Jacobs also had an excellent year.
LVMH records positive performance across product segments
The group’s perfumes & cosmetics business group recorded revenue growth of 17 percent in 2022 or 10 percent on an organic basis, while profit from recurring operations was slightly down.
The watches & jewelry business group recorded revenue growth of 18 percent or 12 percent on an organic basis, while profit from recurring operations was up 20 percent. Tiffany & Co. saw its high jewelry revenue doubled, the new lock bracelet collection, rolled out in North America, enjoyed great success alongside other iconic lines.
Selective Retailing revenue was up 26 percent or 17 percent on an organic basis and profit from recurring operations was up 48 percent. With a strong rebound in activity in its stores, Sephora enjoyed a record performance in both revenue and earnings. Momentum was particularly strong in North America, Europe, the Middle East and in most Southeast Asian countries. The network continued to expand notably due to the partnership with Kohl's in the United States. Sephora’s Russian business was divested.
DFS, the company further said, was still affected 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. Le Bon Marché continues to grow strongly.
At the general meeting of April 20, 2023, LVMH will propose a dividend of 12 euros per share. An interim dividend of five euros per share was paid on December 5 of last year. The balance of seven euros will be paid on April 27, 2023.