The world’s largest luxury conglomerate, reported a revenue of 21 billion euros in the first quarter of 2023, up 17% compared to the same period of last year, more than double analysts’ expectations. Sales growth was driven by fashion and leather goods, but also by duty-free sales and by the good performance of Sephora.
Europe and Japan, which enjoyed strong growth momentum, benefited from robust demand from local customers and international travellers; the United States, a market which continues to grow, had a steady performance, and Asia experienced a significant rebound following the lifting of health restrictions, including in China.
In the Selective Retailing division, which includes Sephora and DFS (duty free), revenue has jumped by 30% in the first quarter of 2023 (+28% organically). According to LVMH, Sephora saw exceptional performance over the quarter and continued to gain market share. Momentum was particularly strong in North America, Europe, and the Middle East. The brand continued to expand its distribution network, particularly in the United Kingdom where, already present online, its first store in London enjoyed “an excellent start.” DFS benefited from the recovery of international travel and, in particular, from the gradual return of travellers to the flagship destinations of Hong Kong and Macao.
The Fashion & Leather Goods business group (Louis Vuitton, Dior, Celine, Fendi...) recorded 18% revenue growth in the first quarter of 2023 (+18% organically).
The Perfumes & Cosmetics business group continued its strategy focused on highly selective distribution, delivering an 11% increase in revenue in the first quarter of 2023 (+10% organically). Christian Dior achieved a remarkable performance and continued to strengthen its lead. Its iconic Sauvage, Miss Dior and J’Adore fragrances were significant channels of growth. Make-up and skincare also contributed to the performance of the Maison. Guerlain benefited from the success of its Aqua Allegoria line. A new liquid foundation enriched the iconic Terracotta collection. Parfums Givenchy unveiled its new fragrance Gentleman Society. Benefit successfully expanded its The Porefessional skincare range, while Fenty Beauty benefited from the strong visibility given to the brand by Rihanna during the American Super Bowl.
In the first quarter of 2023, the Watches & Jewelry business group achieved revenue growth of 11% (+11% organically).
The Wines & Spirits business group recorded revenue growth of 3% in the first quarter of 2023 (+3% organically).
Despite an “uncertain geopolitical and economic context” at the start of the year, LVMH it remains “both vigilant and confident.”