(Paris) The world number one in luxury LVMH broke new records in 2022, with astronomical sales of nearly 80 billion euros (116 billion Canadian dollars) and profits which take off once again.
Turnover reached 79 billion euros in the past year, for a net profit of 14 billion euros, thanks to the strong increase in activity in Europe, the United States and Japan , and despite stable activity in Asia, according to a statement released Thursday.
“We approach 2023 with confidence, but given the current uncertainties, we will remain vigilant and count on the desirability of our Houses and the agility of our teams to further strengthen our lead in the global luxury market,” said its CEO Bernard Arnault, quoted in the press release.
The luxury giant, which owns the brands Louis Vuitton, Dior, Tiffany and Moët & Chandon, among others, saw its turnover in 2022 jump by 23%, or almost 15 billion more than the previous year. Net profit grew slightly more slowly, by 17%.
Profitability is stable with a current operating margin of 26.6%. Current operating profit amounted to 21.1 billion.
World’s first fortune
The luxury giant remains driven by its flagship Fashion and Leather Goods division (Louis Vuitton, Dior, Celine, Fendi), whose sales increased by 25% to reach 38.65 billion euros. At the beginning of January, the group announced that it was renewing the management of its two biggest brands, Louis Vuitton and Dior, with the appointment from 1er February of Pietro Beccari at the head of the first and Delphine Arnault, daughter of Bernard Arnault, at the controls of the second.
As for watches and jewelry, which now includes the American Tiffany, sales increased by 18% to reach 10.58 billion euros. Tiffany is having a record year, according to LVMH, which does not detail the sales of its various brands.
Wines and spirits (Moët & Chandon, Veuve Cliquot, Cheval Blanc, Ruinart, etc.) increased by 19% to 7 billion euros and perfumes and cosmetics by 17% to 7.7 billion euros.
Sales of selective distribution are up 26% to 14.85 billion euros with a “strong rebound in activity” of Sephora stores. DFS (airport galleries) “is still affected by the health situation in China. The flagship destinations of Hong Kong and Macao have particularly suffered with the cessation of domestic travel and the total absence of tourists, ”said the press release.
Geographically, sales in Europe increased by 34% (organic), by 31% in Japan, by 15% in Europe and remained stable in Asia.
“We had a very difficult month of December in China”, explained Jean-Jacques Guiony, the group’s financial director during a point with the press, “it is much better, but we qualify the month of December as a hole of air”.
“We have a situation fortunately which seems behind us and to have been quite brief, but quite violent,” he said.
If the situation seems to be improving in China, the financial director does not see “immediately” the return of Chinese tourists to Europe. “I think we will see the wealthiest Chinese customers who travel alone return, but for groups, it will take longer,” he said, estimating their return around 2024 and maybe not “ with the same magnitude.
LVMH, which in January exceeded the threshold of 400 billion euros in market capitalization, a first for a European company, will pay a dividend of 12 euros per share to its shareholders. It was 10 euros for the previous year.
2022 will also have been the year when Bernard Arnault became with his family the first fortune in the world ahead of Elon Musk, boss of Tesla, SpaceX and Twitter, according to the Forbes ranking.