Start the year well lvmh, the luxury giant, which announced the trend in sales for the first quarter, which were clearly higher than expected: but its data positively influenced the whole luxury sector in the stock market that bets on resumption of shopping from China after the stop caused by the pandemic.
The Lvmh group headed by the Arnault family, whose progenitor Bernard was crowned the richest man in the world by Forbes, announced that it has closed the first quarter 2023 with a turnover of 21 billion euros, an increase of 17% compared to the same period of 2022, while the consensus of analysts stopped at a turnover of around 19,7 billion, an increase of 9-10%.
Il Lvmh title gains +4,61% in the morning. But Hermes (+3,27%) and Kering (+1,37%) are also on the rise. Moncler +4,16%, Brunello Cucinelli +1,69%, Salvatore Ferragamo +2,60% and Tod's +1,36% are in the spotlight in Milan.
Sales above expectations, especially in the Fashion and Leather Goods division
“The surprise comes above all from the division Fashion and leather goods, which grew by 18% against a consensus of around +10% and against our estimate of 8%”, says a note from Equita. The division's sales also went very well 'selective retailing', up 28%, against consensus expectations of around +17%. Thanks above all to the performance of Sephora. The section Wines and Spirits however, it was confirmed as the weakest, growing by only +3%, even if champagne did very well, with growth of 14%. However, cognac lost 5%, impacted by high inventories of American retailers and weak demand in China.
Louis Vuitton drives the good performance of the fashion houses
Among the houses, Louis Vuitton it went particularly well. The latest women's prêt-à-porter shows designed by Nicolas Ghesquière, reports the company, have met with great success. Now we await the first creations of Pharrell Williams, who has been entrusted with the helm of menswear. Even the branded products Christian Dior, which has just shown in Mumbai with the woman, have achieved excellent results as have the collections of Celine, Fendi and Loro Piana.
The return of China: double-digit growth is expected again this year
Geographically, Europe and Japan have seen great momentum, benefiting from solid demand from local customers and international travellers. The United States, a market in constant growth, had a stable performance. Asia also saw a significant jump after health restrictions were lifted.
During the conference call, the management of Lvmh underlined the very positive trend of shopping in China, with growth a double digit which should also be confirmed in the rest of the year.
“In an uncertain geopolitical and economic context, LVMH remains alert and confident. The group will continue to pursue its strategy focused on brand development, driven by a policy of innovation and investment as well as a constant search for product quality, desirability and distribution,” the company specified in a statement.
In view of the acquisition of Platinum Invest to strengthen the high jewelery sector
Lvmh has also announced its intention to acquire platinum invest, the holding company specializing in the production of jewelery which includes the companies Orest and Abysse. The group owns five workshops in the Grand Est region of France and produces high-end jewelery for luxury jewelers around the world. The acquisition aims to enhance the fine jewelry business, above all to improve the production of Tiffany & co. products. According to some industry sources, it would see the production of high-end jewelry for brands such as Platinum invest associated with Cartier and Bulgari, the latter already in the portfolio of the French luxury giant.
