LVMH's Q3 Financial Results Surpass Projections

The world's largest luxury conglomerate generated sales of €19.76 billion, reflecting a 19 percent increase compared to the corresponding time in 2021.

As economic challenges intensify and global leaders remain vigilant, numerous businesses anticipate an overall deceleration, with revenues likely to decline due to diminishing consumer confidence. LVMH Moët Hennessy Louis Vuitton experienced a seamless third quarter, seeing a 19 percent increase in growth compared to the corresponding period last year.

For the three months ending 30 September, the group's sales amounted to €19.76 billion, significantly above the experts' projections of €18.83, as reported by Bloomberg. The corporation additionally claimed that all its business units achieved robust double-digit growth. In the initial nine months of 2022, LVMH's sales increased by 28 percent, totaling €56.5 billion compared to the corresponding period in 2021.

Zendaya wearing the Serpenti Hypnotic Emerald necklace

The group analyzed the findings by geographical contribution, noting a decline in revenues from the US, which experienced a 22 percent gain in the previous quarter. In the third quarter, it reported merely 11 percent as the euro depreciated against the US dollar, resulting in increased sales in cities such as Paris and Milan. The substantial demand from local consumers and the enhancement in global travel have contributed to the significant rises in Europe, the US, and Japan since the beginning of the year. During the initial nine months of 2022, Asia (inclusive of China) had decelerated growth; nevertheless, the most recent quarter witnessed a significant increase attributed to the partial easing of health laws.

The fashion and leather goods division, the primary driver of the group's growth, experienced a 22 percent increase in revenue during the third quarter. The group emphasized the ongoing achievements of Louis Vuitton, which are "driven as always by exceptional creativity and product quality." A multitude of products from the Maison receive favorable reception from consumers, particularly the Tambour Twenty collector’s watch, which commemorated its 20th anniversary and was represented by Bradley Cooper. The timepiece quickly became popular and sold out.

Stablemate Christian Dior experienced robust sales across its product portfolio, and the company highlighted the reopening of the Maison’s 30 Avenue Montaigne in Paris as “overwhelmingly successful.” Likewise, Celine and Loewe had significant growth under the creative leadership of Hedi Slimane and J.W. Anderson, respectively. Fendi commemorated the 25th anniversary of their emblematic Baguette bag with a distinctive fashion display in New York, including supermodel Linda Evangelista as the show's finale.

The group's watch and jewellery division is its second-largest revenue generator, achieving a 16 percent gain in the third quarter, totaling €2.66 billion. Fueled by the strong momentum of Tiffany & Co. and its diverse initiatives, such as the “Vision & Virtuosity” exhibition at Saatchi Gallery in London and the introduction of its Lock unisex bracelets in North America, the jeweler's growth remained in double digits. Although the group has recognized that growth has decelerated relative to previous quarters, its performance is "still very much satisfactory."

Bvlgari announced that its Roman jewellery brand has further enhanced its renowned collections through exhibitions such as “Eden: The Garden of Wonders,” hosted in Shanghai and Beijing. The broadcast of the video “Inside the Dream” provided brand enthusiasts with enhanced insight into the creative process behind numerous high jewelry items, featuring long-time brand associates such as Blackpink’s Lisa, Zendaya, Priyanka Chopra Jonas, Chiara Ferragni, and Lily Aldridge. In the horology sector, TAG Heuer introduced its latest Calibre E4 — Porsche Edition smartwatch, while Hublot persists in its countdown to the 2022 FIFA World Cup as the official timekeeper.

Other business segments, including fragrances and cosmetics, wines and spirits, and selective retailing, recorded growth rates of 10 percent, 14 percent, and 15 percent, respectively.

LVMH remains hopeful about sustaining its current growth against a turbulent geopolitical and economic landscape and will persist in implementing a cost-reduction and selective investment plan. The group's approach will remain focused on enhancing brand desirability through quality assurance, optimal distribution, and responsiveness to client needs.