LVMH (OTCPK:LVMHF) posted record revenue for 2022 and voiced confidence on the year ahead of luxury sales despite pressure on consumers across the globe.
The French luxury group recorded €79.2B in revenue for the full-year, up 23% from the year prior. Management credited performance in the Fashion & Leather Goods category for the strong report, with organic revenue growth of 20% from the segment. Recurring profits from the segment rose 22%, aiding a 23% rise in overall revenue from the prior year to €21.1B.
“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,” CEO Bernard Arnault commented. “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.”
Management added that Asia-Pacific revenue began to stabilize amid a pandemic restriction pivot in China. Strong sales in Japan, particularly for spirit sales, as well as resurgent travel demand also buoyed the regional performance. China is also expected to rebound sharply in 2023.
“With the month of January having started well and despite an uncertain geopolitical and economic environment, LVMH is confident in its ability to continue the growth observed in 2022,” a company statement concluded. “LVMH enters 2023 with confidence and once again, sets an objective of reinforcing its global leadership position in luxury goods.”
Paris-listed shares of the luxury group rose 1.17% on Thursday.
Elsewhere, CEO Bernard Arnault brushed off questions about his potential retirement.
“You will have noticed that the retirement age is being raised,” he joked with analysts.
Read more on the selection of Arnault’s daughter, Delphine, to lead the Dior brand.