Capucines (right, in the photo) and Caro. Fendi First (left, in the photo) and Triomphe. Goya and Amazona. These are the names of the most successful bags and leather goods lines from Louis Vuitton, Dior, Fendi, Celine and Loewe. In other words, LVMH’s top brands, which the French armoury cites as the “sales champions” of yet another astonishing fiscal quarter. Astonishing and record-breaking, since its Fashion & Leather Goods Division smashed every previous quarterly result, growing by 24% over 2020 and 38% over 2019. These numbers reassure investors and allow LVMH to claim that it has (almost) erased the pandemic and its effects from its accounts, operations and balance sheets.
The first nine months
LVMH closed the first nine months of the year with a turnover of 44.18 billion euros, which means organic growth of 40% over 2020, and 11% over 2019. In nine months, the Fashion & Leather Goods Division achieved revenues of 21.3 billion euros: +57% over 2020 and +38% over 2019. Luca Solca, analyst at Bernstein, said that this division exceeded expectations, which “will be a relief for investors“. Looking ahead, “the group is confident in the duration of the current growth,” reads the report released by LVMH, which grossed a total of 15.5 billion euros in the third quarter, 500 million euros more than analysts expected.
LVMH’s astonishing quarter
LVMH is the first major luxury group to publish figures for the third quarter. These figures tell us how healthy the industry is, thanks to strong demand in the US. But that’s not all: China is also staying the course, showing that it has been affected by Xi Jinping‘s “common prosperity” speech. Not surprisingly, LVMH’s chief financial officer Jean Jacques Guiony says he has seen “no change” in Chinese business, as reported by the Financial Times.
LVMH wipes out the pandemic
“We have almost completely wiped out the impact of the health crisis in less than a year,” Guiony says, pointing out that LVMH has not had any problems with the supply chain, as its production is largely based in Europe, as Reuters writes.