LVMH closes 2022 with record results

The French luxury goods group Moët Hennessy Louis Vuitton (LVMH) achieved strong growth in the 2022 financial year despite adverse conditions and reached new highs in sales and profits. The strong numbers that the company presented on Thursday evening were due in particular to the above-average dynamic development of the fashion division and significant increases in sales in Europe, Japan and the USA.

Group sales amounted to EUR 79.2 billion last year, exceeding the 2021 level by 23 percent. On an organic basis – i.e. adjusted for exchange rate fluctuations and the contributions of newly acquired business areas – the growth rate was 17 percent.

Sales of fashion and leather goods increase by 25 percent

The fashion and leather goods segment made the largest contribution to sales. Its revenues grew by 25 percent (organically +20 percent) compared to the previous year to a new record of 38.6 billion euros. The group made “outstanding results from Louis Vuitton, Christian Dior, Celine, Fendi, Loro Piana, Loewe and Marc Jacobs” responsible for the strong increase.

The other Group divisions also posted significant improvements: sales of wine and spirits rose by 19 percent (organically +11 percent) to EUR 7.1 billion, with perfumes and cosmetics by 17 percent (organically +10 percent) to EUR 7.7 billion and with watches and jewelery by 18 percent (organically +12 percent) to 10.6 billion euros. Revenues in the retail segment with the chains Sephora and DFS were 14.9 billion euros, exceeding the previous year’s level by 26 percent (organically +17 percent).

Group profit also reached a new high

Because the gross margin remained constant and operating expenses increased roughly in proportion to sales, the group was also able to improve its earnings significantly. The operating profit adjusted for special effects grew by 23 percent to 21.1 billion euros and also reached a new high. Net income attributable to shareholders was €14.1 billion, up 17 percent year-on-year.

As usual, LVMH did not publish any concrete forecasts for the current year. “We approach 2023 with confidence, but remain vigilant given the current uncertainties,” said CEO Bernard Arnault in a statement.