LVMH revenue up 46% in first nine months of 2021
By Jenni Reid
10:48, 13 October 2021
The world’s biggest luxury goods business, LVMH, reported revenue of €44.2bn ($46.6bn, £34.1bn) in the first nine months of the year, 46% higher than in 2020.
Revenue was 11% higher than in 2019, though its Fashion and Leather Goods segment saw record sales that made 53% more than last year and 38% more than two years prior.
It comes off the back of record first-half results for the French firm, boosted by strong sales in Asia and the US.
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Revenue growth was slower in the third quarter at 20% versus 30% in the first quarter and 84% in the second.
But overall revenue for the first nine months of the year was up across all segments compared with 2020, including Wines and Spirits, Perfumes and Cosmetics, and Watches and Jewellery.
LVMH 75 brands include the eponymous Louis Vuitton, Moët Hennessy, as well as Christian Dior, Bulgari, Givenchy, Marc Jacobs and Stella McCartney.
The company said Tiffany, which it purchased for $15.8bn in January, showed “remarkable performance” in its main market of the US.
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The group said that the world’s “gradual exit” from the pandemic made it “confident in the continuation of current growth”.
Its share price was up 2.2% at 11:30 BST on Wednesday and is up 26.54% so far this year, reflecting the strong gains it has made during the pandemic, despite an August dip resulting from concerns over the impact of China’s crackdown on corporate profits and “excessive incomes”.
European luxury stocks got a boost on LVMH’s results, with Hermes up 1.82%, Gucci and YSL owner Kering up 0.8%, and Cartier owner Richemont up 0.9%.
“The very strong update from the sector leader should prompt upward earnings revisions for this year and next, and set the sector on an even keel. LVMH is seen as the bellwether of the luxury goods industry — this update should reassure,” said Bernstein analyst Luca Solca.
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