LVMH, the world’s largest luxury group, posted expectations-beating sales growth in Q1 2022 despite the reappearance of Covid-19 disruptions in the Chinese market, a key driver of sales growth, and the volatility caused by the war in Ukraine, reports the Financial Times.
Helped by strong sales at its biggest brands Louis Vuitton and Dior, first-quarter revenue grew 23% on an organic basis, a similar pace to the fourth quarter, to reach €18 billion. Analysts had expected 17% organic growth, which strips out the effects of currency moves and acquisitions.
The group, owned by French billionaire Bernard Arnault, surfed a luxury boom in the US and China last year, which sent its shares sharply higher. But investors have punished the luxury sector this year because of concerns over slowing global growth and the lingering effects of the pandemic in China, which is the second biggest luxury market after the US.